Latest Breaking News On - Sugar stocks - Page 1 : comparemela.com

In a sector, where government policies have a major impact, the risk of any change in policy impacting the players is always present. That is the reason why the valuations of these stocks from such sectors don t cross a certain threshold. Probably the sugar sector tops the lists of such sectors and the reason is because both the central and state governments have some say in the policy making. Recently, there was a tweak in how much sugar cane juice can go for ethanol production and now a rise in fair remunerative price (FRP) which companies have to pay to farmers. In different states, it is called by different names, like state advised price or minimum support price also, however the reaction of the street was that all the sugar stocks tumbled. The fact is that in some states this price which sugar mills pay was hiked months back and that does not mean any negative impact. So, it has to be case by case rather than broad brush.

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