Shares of Indian sugar producers slipped in afternoon trade on a report that govt may increase fair and remunerative price (FRP) for sugarcane by 20 rupees to 275 rupees per quintal
FRP is the minimum price that sugar mills have to pay to farmers.
“Raising FRP will definitely hurt margins as costs for these companies will go up,”’ said an analyst with a domestic brokerage who did not wish to be quoted’.
The share prices of E.I.D.-Parry (India) Limited fell as much as 4.1 per cent to Rs 214, while Dhampur Sugar Mills Limited dropped up to 4.3 per cent to Rs 80.6, reports Reuters.
Dalmia Bharat Sugar and Industries Ltd declined as much as 5.9 per cent to Rs 52; the stock had fallen over 58 per cent this year as of last close.