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

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

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.

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