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Sugar stocks rally as Cabinet nods Rs3,500cr assistance to sugarcane farmers; Dhampur Sugar up 3%

At present, there are close to five crore sugarcane farmers (Ganna Kisan) and their dependents in India.

December 17, 2020 11:06 IST | India Infoline News Service
Major sugar stocks were trading on a bullish note on Thursday after the Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi approved assistance of about Rs3,500cr for sugarcane farmers (Ganna Kisan).

At around 11 am, Balrampur Chini Mills was trading at Rs180.20 per piece up 1.69%. While Dhampur Sugar Mills surged by 2.68% at Rs182.30 per piece.

Furthermore, Bajaj Hindustan Sugar soared by 1.19% at Rs6.82 per piece, EID Parry at Rs346.50 per piece higher by 1.33% and Uttarm Sugar Mills at Rs109.30 per piece up 2.15%.

Andhra Sugars and Dwarikesh Sugar Industries also gained marginally.

The cabinet on Wednesday said, "Government will incur about Rs3,500cr for this purpose, and this assistance would be directly credited into farmers’ accounts on behalf of sugar mills against cane price dues and subsequent balance, if any, would be credited to mill’s account."

At present, there are close to five crore sugarcane farmers (Ganna Kisan) and their dependents in India. Additionally, there are about five lakh workers employed in the sugar mills and ancillary activities; and their livelihood depends on the sugar industry.

"Farmers sell their sugarcane to the sugar mills, however, the farmers are not getting their dues from the sugar mill owners as they have surplus sugar stock. To address this concern, the Government is facilitating the evacuation of surplus sugar stock. This will enable payment of dues of the sugarcane farmers," the Cabinet said.

Further, the Cabinet highlighted that this subsidy aims at covering expenses on marketing costs including handling, upgrading and other processing costs and costs of international and internal transport and freight charges on the export of up to 60 LMT of sugar limited to Maximum Admissible Export Quota (MAEQ) allocated to sugar mills for sugar season 2020-21.

Thereby, the decision will benefit the five crore sugarcane farmers and their dependents, as well as the five lakh workers employed in the sugar mills and related ancillary activities.  

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