Due to the demand and price rise in the international market, Sugar Industries is batting. These companies have given excellent returns in the last few months.
Sugar export subsidy was reduced from 6 rupees to 4 rupees per kilogram.
The government has announced a huge cut in sugar export subsidy on Thursday amid the rise in the price of sugar in the global market. Earlier, there was a subsidy of 6 rupees per kg of sugar exported, which has now been reduced to 4 rupees. Now, on the export of one ton of sugar, only 4000 rupees will be given as subsidy instead of 6000. About 34 per cent reduction in subsidy has been done with immediate effect.
Regarding this decision of the government, traders say that it is not going to make much difference. In the past, what decisions have been taken regarding the sugar and sugar industry. What effect will this have on the farmers, as well as how attractive the sugar industry is for the investors of the stock market, in this article, we will know about all those aspects. The government has set the target of 6 million tonnes of sugar exports for current marketing year of 6 million tonnes. Its marketing year runs from October to September in terms of production.
What will be the effect of decreasing subsidy?
So far 57 lakh tonnes of sugar have been exported with a subsidy of Rs 6000 per ton. The remaining 3 lakh tonnes of sugar will now be exported at a subsidy of Rs 4000 per tonne. Joint Secretary of the Ministry of Food, Subodh Kumar told the news agency PTI that the rate of sugar is increasing in the international market. In such a situation, there will be no loss due to decrease in subsidy to exporters. If the price rises further in the coming days, it is possible that the government may cut the export subsidy further.
Marketing year will end in September
Talking about production, the sugar production has reached 30 million tonnes for the marketing year 2020-21 (October 2020 to September 2021). The figure was 27.42 million tonnes for the marketing year 2019-20. India needs 26 tonnes of sugar for its use in one marketing year. In December 2020, in a cabinet meeting chaired by Prime Minister Narendra Modi, the sugar mills had approved the proposal of Sugar Export Subsidy of Rs 3,500 crore for the marketing year of 2020-21. Due to this subsidy from the government, the arrears of sugarcane farmers will become silent.
Balrampur Leader of this sector
If we talk about the sugar industry now, due to the increase in the rate in the international market, they have their bat and investors are earning a lot of profits. Balrampur Chini Mills is the largest sugar manufacturer in India. Apart from this, EID Parry, Triveni Engineering and Dalmia Sugar are the leading companies in this sector. In one year, Balrampur Chini has given 238 per cent, EID Parry 168 per cent, Triveni Engineering 255 per cent and Dalmia Sugar has given 452 per cent.
Shop for a fall in price
Balrampur Chini has given 21 per cent returns in one month and 78 per cent in three months. Triveni Engineering has given 30 per cent returns in one month and 94 per cent in three months. Dalmia sugar has given 13 per cent in a week, 47 per cent in a month and 129 per cent in three months. Market experts say that the performance of these companies is quite impressive. In such a situation, shopping can be done on the decline in price on the appropriate advice of your consultant. Right now, the scope of this sector is showing more scope.
Also read, this is the right time to buy gold, prices can go beyond Rs 55,000 per ten grams
Also Read: Boom in banking shares, stock market closed, Sensex closed 975 points, investors earned 2.42 lakh crores