Sugar stocks in trade on Friday (June 19, 2020) are trading higher on reports that government is mulling to hike minimum support price on sugar beyond Rs. 31.
Triveni Engineering, Dhampur Sugar Mills, Simbhaoli Sugars, Mawana Sugars are all trading with gains of up to 5%.
On Thursday, Sudhanshu Pandey food secretary said the consideration is being made to help sugar millers in clearing cane dues worth Rs. 22000 crore to farmers.Last year, the government increased the price at which mills sell sugar to bulk buyers by Rs 2/kg to Rs 31/kg.
"We've received views from state governments on the ma¬tter. Even Niti Aayog has reco¬m¬mended a hike. We are look¬ing into the matter. We will take a balanced approach in the interest of both farmers and consumers," Pandey said.
A task force has been established by Niti Aayog for recommending a one-time hike of Rs. 2 per kg.