Sugar Stock Rises Upto 13 Percent After Rise In Sugar Prices Due To Crop Production Shortfall

Sugar Stocks Shines: Due to the lack of rain in this monsoon season, the production of sugarcane is expected to be affected, due to which there is a possibility of a decrease in the production of sugar. In such a situation, the prices of sugar have reached the high of 6 years. On the one hand, this news has increased the risk of inflation, but in the trade of Wednesday, September 6, 2023, the sweetness of the shares of Chinese companies listed on the stock exchange has increased. There is a strong boom in sugar stocks.

Increased sweetness of sugar stocks

The biggest gain is being seen in Avadh Sugar and Energy which is trading at Rs 688 with a gain of 12.44 per cent. Mawana Sugars is trading at Rs 112.50 with a jump of 9.73 percent, Dhampur Sugars at Rs 287.20 with a jump of 7 percent, Dalmia Bharat Sugars at Rs 433.35 with a jump of 6.99 percent, Balrampur Chini with a jump of 2.54 percent at Rs 414.50.

Apart from this, Bajaj Hindustan is trading at Rs 29.50 with a gain of 4.13 percent and Shree Renuka Sugars is trading at Rs 54.01 with a gain of 6.74 percent. Rajshree Sugar is trading at Rs 62.21 with a gain of 5.32 per cent.

Benefits of rising sugar prices

The reason for the rise in the stocks of sugar companies is the rise in the prices of sugar, which is at a 6-year high. In the domestic retail market, the average price of sugar used to be Rs 41.45 per kg on January 1, 2023, which has increased to an average of Rs 43.42 per kg on September 5. That is, in 2023, according to the government data, the price of sugar has increased by about 5 percent. Increase in sugar prices will improve the margin of sugar companies, their profits will increase, due to which the shares of these companies are seeing a boom.

In this Kharif season, the production of sugarcane has been affected due to lack of rain in Karnataka and Maharashtra, due to which there is a possibility of further increase in the prices of sugar. There is a danger of rising inflation due to the high cost of sugar, but investors investing in Chinese companies and Chinese stocks have come out with silver.

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