The sugar stocks are being trading cautiously with mixed sentiments prior to the critical Cabinet meeting that will determine the prices of cane. However, the market hopes a positive result from the cabinet meeting, since the sugar companies have been giving many presentations to the govt officials to explain the linkages between the revenue realizations and cane prices.
County’s sugar mills have been wobbling under pressure as the cane prices are high and also the sugar prices are under the control of the govt. The sugar prices in India are lingering in the range of Rs 42 to 43 per kg, while globally the sugar prices are on the weaker side.
As per the market expectations, the Government may perhaps increase the FRP (Fair and Remunerative Price) to Rs 255 quintal for 2017-18. The FRP stood at Rs 230 /quintal in the year 2016 -17 and the basic recovery rate stands at 9.5 percent. The higher cane price will create difficulty for the states of Karnataka, Andhra and Maharashtra.