Sugar stocks such as Shree Renuka Sugars, Avadh Sugar and Energy, Dhampur Sugar Mills, Balrampur Chini Mills, Magadh Sugar and Energy, EID-Parry and Ugar Sugar among others are in focus today after industry body ISMA revised downwards the country’s sugar production estimate.
ISMA lowered the production estimate to 328 lakh tonnes for the current marketing year ending September, from an earlier projection of 340 lakh tonnes.
Stock of Shree Renuka Sugars was trading 0.15% higher at Rs 47.02 in early trade. Shares of Avadh Sugar and Energy gained 0.14 percent to Rs 508.70 on BSE.
Stock of another sugar firm Dhampur Sugar was trading 0.23% lower at Rs 243.20 on BSE. Shares of Balrampur Chini Mills slipped 0.79 percent to Rs 422.10 against the previous close of Rs 425.45 .
Shares of Magadh Sugar and Energy gained 1.17% to Rs 381.95 against the previous close of Rs 377.45.
EID-Parry shares fell 0.11% percent to Rs 505.45 in early trade.
The lowering of estimate comes after a fall in sugar output in Maharashtra to 105 lakh tonnes in the 2022-23 marketing year (October-September), from an earlier projection of 121 lakh tonnes.
Sugarcane crushing season has ended in the state.
“ISMA has revised its all-India sugar production estimate for 2022-23 (after diversion into ethanol) to 328 lakh tonne, after considering diversion of about 40 lakh tonne of sugar equivalent into ethanol,” the association said.
In January, ISMA had projected production of 340 lakh tonne after diversion of 45 lakh tonnes towards ethanol.
Sugar production in 2021-22 stood at 358 lakh tonne post diversion towards ethanol.
“Crushing season in Maharashtra has ended at around 105 lakh tonnes, lower than our earlier estimate, due to unexpectedly lower cane yields owing to higher crop share and uneven distribution of rainfall,” ISMA said.
Meanwhile, in Uttar Pradesh, the sugar output for 2022-23 has been revised upward to 105 lakh tonne from 101 lakh tonne projected earlier.