ALSO READSugar shares recover from 52-week low; Dwarikesh, Dhampur Sugar up 8% Sugar industry overestimated October output Buying by stockists likely to push up sugar prices Govt to lift sugar stockholding cap; may raise duty if price fall persists UP sugar mills saddled with Rs 1,130-cr farmers' arrears
Shares of sugar companies were trading higher by up to 20% on BSE in otherwise weak market after the government imposed a limit on the amount of sugar that mills can sell in the market during February and March. The market price of Avadh Sugar & Energy, Dhampur Sugar Mills, Magadh Sugar, Mawana Sugars, Dwarikesh Sugar and Uttam Sugar Mills were trading higher by more than 4% on BSE. Dalmia Bharat Sugar, Triveni Engineering & Industries, Thiru Arooran Sugars, Sakthi Sugars, Shree Renuka Sugars and Rajshree Sugars up in the range of 3% to 4%. In comparison, the S&P BSE Sensex was trading 1.4% or 480 points lower at 33,933 at 10:29 AM.
COMPANY LATEST PREV CLOSE GAIN(%) AVADH SUGAR 809.70 674.75 20.00 DHAMPUR SUGAR 208.40 193.80 7.53 MAGADH SUGAR 181.00 169.05 7.07 MAWANA SUGARS 64.15 60.55 5.95 UTTAM SUG. MILLS 121.40 115.10 5.47 DWARIKESH SUGAR 42.30 40.55 4.32 TRIVEN. ENGG. IND. 67.85 65.15 4.14 DALMIA BHARAT 110.30 106.15 3.91 GAYATRI SUGARS 12.10 11.69 3.51 THIRU AROOR. SU. 47.85 46.25 3.46
The limit is 86% for the end March, the Reuters report suggested quoting the government order. CLICK HERE TO READ FULL REPORT The government increased the import duty on sugar to 100% from 50% on Tuesday. The prime reason for the rise in import duty is to keep a check on the falling sugar prices and to avoid any cheaper imports of sugar from Pakistan in the wake of expected higher domestic sugar production in the current sugar season 2017-18. The hike in import duty is expected to provide support the sugar prices and keep them stable in the near term, CARE Ratings said in a note. Also, it is import to watch if the government takes some measures on the export front such as reduction in export duty on sugar or incentivises sugar exports when the production comes in full swing in the March quarter to avoid any surplus situation, it added. Most the sugar stock have fallen an over 40% from their respective one-year highs and hitting 52-week lows on BSE in earlier of the current week.
|One-year high||One-year low||%|
|Sir Shadi Lal||20/09/2017||172.00||05/02/2018||53.55||-68.9|
|KM Sugar Mills||08/02/2017||37.50||05/02/2018||14.70||-60.8|
|Ugar Sugar Works||08/02/2017||43.00||05/02/2018||19.85||-53.8|
|Triven. Engg. Ind.||08/08/2017||107.90||05/02/2018||57.00||-47.2|
|Thiru Aroor. Su.||08/02/2017||81.95||06/02/2018||43.75||-46.6|
|DCM Shriram Inds||17/05/2017||385.00||06/02/2018||228.00||-40.8|
|KCP Sugar &Inds.||16/02/2017||42.60||05/02/2018||25.40||-40.4|
|Ponni Sug. Erode||08/02/2017||230.00||06/02/2018||143.00||-37.8|