Indian sugar market took a big hit as price of sugar went down this agricultural session. Shree Renuka Sugars Ltd. and Balrampur Chini Mills two of the largest sugar refining plants in India had been badly affected by this fall.
In the current quarter, share prices of most of the leading sugar producers of India fell by 20%. Many blamed the late monsoon of 2009 which had small amount of rain. As a result, India had to import sugar. blog.taragana.com reports:
The current agricultural year has witnessed maximum output that has raised beyond the expected levels. The fact receives a boost with an increment in the production of sugar from Brazil, which happens to be world’s largest sugar producer. Analysts have stashed their ratings last Thursday in accordance to Shree Renuka Sugars Ltd. & Balrampur Chini Mills Ltd, thus moving on to assume that sugar output in India shall receive a boost by 40% in the upcoming quarter.
On March 17, 2010, Shree Renuka Sugars would determine the equity of shareholders who would be entitled to Shree Renuka Sugars bonus shares. The share would be issued in the ratio of 1:1. One of the leading sugar exporters of India, Shree Renuka Sugars’ net profit rose 1827.7% to Rs. 194.70 crore in the first quarter of FY 2009-2010. Sales rose 270.4% to Rs. 1253 crore compared to the first quarter of 2008-2009.