NEW DELHI: Stocks of sugar producers moved sideways on Wednesday after the Cabinet okayed a Rs 8,000 crore bailout package for mills, which is seen to benefit 5 crore sugarcane farmers.The government fixed minimum selling price for sugar at Rs 29 per kg.
The average ex-mill price of sugar is in the range of Rs 25.60-26.22 per kg.
That's below cost of production.The government will also create 30 lakh mt buffer of sugar stock to balance demand and supply mismatch, ETNow reported.It's looking to compensate sugar mills to the tune of Rs 1,200 crore for maintaining buffer stock.
There are plans to provide incentives worth of Rs 4,400 crore for ethanol blending.Balrampur Chini fell 1.45 per cent to Rs 71.15, Dhampur Sugar 1.79 per cent to Rs 101.75 and Shree Renuka 0.31 per cent to Rs 15.95.
However, Bajaj Hindushtan Sugar rose 1.55 per cent to Rs 7.20.
Thiru Aroonan Sugars too advanced 4.9 per cent to Rs 30.Sugar mills' financial health has worsened of late due to a sharp fall in prices following a record sugar production of over 31.6 million tonnes so far in the 2017-18 marketing year (October-September), PTI reported.