Stocks of Indian sugar maker companies witnessed selling pressure during the early trading hours on February 22 amid rising input costs after the government announced a hike in the fair and remunerative price (FRP) of sugarcane.  

Shares of KCP Sugar, Mawana Sugars, Rana Sugars and Shree Renuka Sugars fell more than 3% on Thursday at their daily low levels. Balrampur Chini Mills, EID Parry and Triveni Engineering also saw a more than 2% drop in the early morning trades. Dalmia Bharat Sugar, Dhampur Sugar Mills and Dwarikesh Sugar witnessed their shares slip as much as 1.8%. 

On Wednesday, the Cabinet Committee on Economic Affairs, chaired by PM Narendra Modi, approved a hike in the fair and remunerative price (FRP) of sugarcane to Rs 340 per quintal with a sugar recovery rate of 10.25% for the 2024-25 season.

The FRP has been determined based on recommendations of the Commission for Agricultural Costs and Prices (CACP) and after consultation with state governments and other stakeholders.

The revised FRP, a nearly 8% or Rs 25 hike from the FRP of sugarcane for the current season 2023-24, will be applicable from October 1, 2024. The committee said in a press release that the new FRP will ensure the prosperity of sugarcane farmers.