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.
|THIRU AROOR. SU.||47.85||46.25||3.46|
This move is to prevent sugar prices from falling sharply, which, in turn, would help mills in making sugarcane payments quicker to farmers.
At the end of February mills need to be holding as inventory at least 83% of the opening stock from January and February's production. The limit is 86% for the end March, the Reuters report suggested quoting the government order. CLICK HERE TO READ FULL REPORT
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|
|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|