Sugar shares in focus; Dhampur, Mawana, Dwarikesh up over 4%
Avadh Sugar, Magadh Sugar and Uttam Sugar Mills were trading higher by more than 5% on BSE
 "Sugarcane")
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Settlement of arrears within 14 days of sale was a prominent pre-poll promise of the Bharatiya Janata Party
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.
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 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.
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 |
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 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 | % | |||
| Company | Date | Price | Date | Price | Chg |
| Riga Sugar | 25/04/2017 | 39.90 | 05/02/2018 | 11.90 | -70.2 |
| Sir Shadi Lal | 20/09/2017 | 172.00 | 05/02/2018 | 53.55 | -68.9 |
| Magadh Sugar | 28/07/2017 | 364.00 | 05/02/2018 | 128.55 | -64.7 |
| KM Sugar Mills | 08/02/2017 | 37.50 | 05/02/2018 | 14.70 | -60.8 |
| Mawana Sugars | 11/09/2017 | 144.90 | 06/02/2018 | 57.70 | -60.2 |
| Rana Sugars | 08/02/2017 | 14.85 | 08/02/2018 | 6.01 | -59.5 |
| Ugar Sugar Works | 08/02/2017 | 43.00 | 05/02/2018 | 19.85 | -53.8 |
| Dwarikesh Sugar | 11/10/2017 | 80.50 | 05/02/2018 | 37.25 | -53.7 |
| Simbhaoli Sugar | 09/02/2017 | 39.20 | 05/02/2018 | 18.90 | -51.8 |
| Sakthi Sugars | 08/02/2017 | 43.20 | 05/02/2018 | 21.30 | -50.7 |
| Dalmia Bharat | 05/05/2017 | 193.35 | 05/02/2018 | 98.75 | -48.9 |
| Rajshree Sugars | 03/11/2017 | 74.80 | 06/02/2018 | 38.30 | -48.8 |
| Triven.Engg.Ind. | 08/08/2017 | 107.90 | 05/02/2018 | 57.00 | -47.2 |
| Dhampur Sugar | 01/11/2017 | 330.85 | 05/02/2018 | 174.95 | -47.1 |
| Thiru Aroor. Su. | 08/02/2017 | 81.95 | 06/02/2018 | 43.75 | -46.6 |
| Balrampur Chini | 13/09/2017 | 182.50 | 05/02/2018 | 105.70 | -42.1 |
| 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 |
| Bajaj Hindusthan | 02/01/2018 | 18.80 | 06/02/2018 | 12.85 | -31.6 |