Government hikes BG 2 cotton price by 5 pct: Kaveri Seed, Bayer Crop to gain, says Anil Singhvi

Big news for companies like Kaveri Seeds and Bayer Crop as the Government has increased prices of a type of cotton seeds. The government has increased prices of BG 2 cotton seeds by 5 per cent. Zee Business Managing Editor Anil Singhvi spoke to Special Correspondent Chetan Bhutani to give viewers the complete story.  

The Government has issued a notification that says prices of BG 2 cotton seeds have been increased. This means that companies like Kaveri Seeds and Bayer Crop who manufacture cotton seeds are expected to get benefit. The price of BG 2 Cotton Seeds will increase from Rs 730 to Rs 767. Bhutani said that this news is a positive development for the seed companies.  

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BG-2 cotton seed is a genetically modified cotton seed and both Kaveri and Bayer are producing the seeds. Bhutani said that every year the government fixes a price of BG 2 cotton seeds.  

He said that the government has fixed a price of Rs 767 for a 450-gram packet. This is a 5 per cent from last year’s price of Rs 730. Meanwhile the price of BG1 cotton is Rs 634 which has not been changed from the last year price.

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कावेरी सीड और बेयर कॉर्प के लिए अच्छी खबर...

सरकार ने 5% से ज्यादा बढ़ाए BG 2 कॉटन के दाम....जारी हुआ नोटिफिकेशन#Cotton @AnilSinghvi_ @BhutaniChetan pic.twitter.com/FMAjvfs4bu

— Zee Business (@ZeeBusiness) March 31, 2021

Zee Business Managing Editor Anil Singhvi called this a big development. The price of seeds have gone up because of the rising demand for yarn. 

Kaveri Seeds stock was trading at Rs 511, up by almost 5 per cent when the news broke.  

Analyst Kunal Saraogi said that the stock is placed well on the technical charts and it appears that Kaveri Seed stock is approaching a breakout. He said that the support level for this stock was around Rs 485 and a bounce back is apparent now at this level. He puts the target price at Rs 550 

Saraogi said that even Bayer Cropscience stock is showing strength. He recommended a buy on both the stocks.