Sugar stocks gain on Rangarajan decontrol report

Shares of sugar companies rose on Friday after the Rangarajan Committee submitted its report on the decontrol of sugar.

Share price of Renuka Sugar rose 0.27% to Rs 36.85, Balrampur Chini Mills gained 3.46% to Rs 71, Sakthi Sugars gained 1.67% to Rs 33.50 and Dhampur Sugar Mills was trading higher by 4.26% to Rs 72.20 on the BSE at 12.45 pm IST.

The committee recommended that farmers should be paid Fair and Remunerative price (FRP) as the base price for sugarcane. The report also hints that the government should buy sugar from the market for sale to the poor.

The committee also suggested a profit-sharing mechanism, so as to nable profits for farmers in the event of a price rise.

The panel also suggested that government should make a long-term agreement with cane farmers and they should get 70% of all revenue.

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