Sugar stocks turn sweet as govt allows additional exports

Mumbai: Shares of sugar companies today soared by up to 7 percent in the morning trade as the government allowed exports of additional 1 million tonne (MT) of the sweetener.

[caption id=“attachment_256728” align=“alignleft” width=“380” caption=“Govt approval of exports sweeten sugar stock. Reuters”]  [/caption]

Empee Sugars and Chemicals was trading 7.42 per ent higher at Rs 13.60, while Sakthi Sugars shot-up 4.67 percent to Rs 25.75 on the BSE. Other major gainers were Shree Renuka Sugars which was up 3.28 percent, Bajaj Hindusthan climbed 2.10 percent, Balrampur Chini Mills went up by 0.84 per cent, while

Dwarikesh Sugar rose by 0.63 percent. Further, Triveni Engineering was up 0.31 pe cent and Dhampur Sugar Mills gained 0.58 percent.

The government yesterday allowed further 1 MT of sugar exports in view of surplus production and to help mills clear mounting cane arrears, that have reached Rs 8,409 crore till February, to farmers.

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India is the world’s second-largest producer of sugar and is also the biggest consumer. It had produced 24.3 MT and exported 2.6 MT in the previous marketing year.

PTI