INVESTNG IN SUGAR STOCKS HOLD OR EXIT

Sukumar Sen asked :
I want ur suggestion on Sugar Stock I have Balram Pur Chini @ 145 250 Shares & Dhampur Sugar @142 250 Shares Plz Guide hold /sell
Answer :The central government has put an FPR (Fair price regulation) on sugarcane farmers at a price
of Rs. 128 a quintal. However the actual production cost is much more in some states.
The manufacturing industries gain due to this FPR as they any way sell the final product
for much higher price.

However, there have been demands to increase the FPR price from Rs 128 to any where between
250 and 400. If the government considers this, there might be tight profit margins to industries
and will see a reduction in stock price. My suggestion is to exit out of your positions
and get in when uncertainity is gone