Budget 2023: Sugar stocks rally on benefits to co-operatives

Shares of Sugar companies rallied on Wednesday after Finance Minister Nirmala Sitharaman announced benefits to sugar co-operatives worth Rs 10,000 crore.

At the bourses, Shree Renuka Sugars and Dwarikesh Sugar Industries rallied over 2%, while Balrampur Chini Mills and Dalmia Bharat Sugar jumped 0.37% and 1.69%, respectively.

"I propose to provide an opportunity to sugar co-operatives to claim payments made to sugarcane farmers for the period prior to assessment year 2016-17 as expenditure. This is expected to provide them with a relief of almost Rs 10,000 crore," Nirmala Sitharaman said in her Budget speech.

If any deduction claimed for expenditure made on purchase of sugar has been disallowed, an application can be made to the assessing officer, who will recompute the income of the relevant previous year after allowing such deduction up to the price fixed or approved by the government for such previous year.
Overall, as expected, the government put heavy emphasis on capital expenditure by increasing outlay by 33% to Rs 10 lakh crore.

"A 33% increase in capital expenditure to 10 lakh crore rupees, the highest ever will go a long way in building roads, ports, and airports — crucial for making India a reliable investment destination," said Anand Rathi, Founder & Chairman, Anand Rathi Group.

"Investment of Rs 2.4 lakh crore in Railways is commendable," he said.

"The Budget is a pro-growth Budget which meets expectations while keeping up with fiscal prudence. It has put more money in the hands of consumers even as it generates a multiplier effect on the economy by increasing outlays on agriculture, infrastructure, railways and energy transition," said S Ranganathan, Head of Research, LKP Securities.

"The government’s relief on personal income tax by providing rebate up to Rs 7 lakh and making changes in the slab rate under the new income-tax regime comes as a major boost to the Indian markets," said Sanjay Moorjani, Research Analyst, SAMCO Securities.