Shares of nine sugar makers rose by 0.84% to 4.25% after the Cabinet Committee on Economic Affairs (CCEA) on Wednesday (16 December 2020) approved assistance of about Rs 3,500 crore for sugarcane farmers.Uttam Sugar Mills (up 4.25%), Sakthi Sugars (up 3.88%), Rana Sugars (up 3.42%), Balrampur Chini Mills (up 2.88%), Dhampur Sugar Mills (up 2.79%), DCM Shriram (up 2.3%), EID-Parry (India) (up 1.8%), Dalmia Bharat Sugar and Inds (up 1.75%) and Andhra Sugars (up 0.84%) advanced.
Farmers sell their sugarcane to the sugar mills, however the farmers are not getting their dues from the sugar mill owners as they have surplus sugar stock. To address this concern, the government will be facilitating the evacuation of surplus sugar stock. This will enable payment of dues of the sugarcane farmers. The government will also incur about Rs 3,500 crore for this purpose, and this assistance would be directly credited into farmers accounts on behalf of sugar mills against cane price dues and subsequ