Gayatri Sugars and Bannari Amman stocks jumped 3% each on the BSE. Followed by Bajaj Hindusthan Sugar, Shree Renuka Sugars, Balrampur Chini Mills, and Dhampur Sugar Mills Ltd, which were up in the range of 1-2% respectively.
The benchmark price of sugar sold at factory gate has been increased by Rs2 to Rs31 per kg to boost the liquidity of millers and help them clear arrears of sugarcane farmers ahead of the Lok Sabha polls, as per government data.
The announcement was made by the Union Minister of Consumer Affairs, Food and Public Distribution, Ram Vilas Paswan.
The Department of Food, Ministry of Consumer Affairs, Food and Public Distribution has made this key decision of increasing MSP by Rs2 per kg in order to provide more liquidity to the Sugar Mills so that they are able to pay the arrears or dues to the Sugarcane farmers, as per a press note released by the Government.
Addressing media after the announcement, Union Minister of Consumer Affairs, Food and Public Distribution, Ram Vilas Paswan asserted that the main objective of the Prime Minister Narendra Modi led government is to ensure farmers’ welfare and growth and this move is another step in that direction. Paswan said that the hike in MSP will lead to increased income and savings for the Sugar Mills which will then be passed on to the Sugarcane farmers. Read more
Meanwhile, equity benchmark indices were trading in the red on Friday with the Sensex fell 274 points at 35,602 points. Nifty also dropped 84 points at 10,662 levels, well below its key levels support level of 10,700.