Sugar shares rally on release of decontrol report

Shares of sugar companies are trading higher by up to 6% after the Rangarajan Committee release the report on sugar decontrol.

Shree Renuka Sugars, Balrampur Chini Mills, Bajaj Hindustan, EID Parry (India), Oudh Sugar Mills and Dhampur Sugar Mills are trading higher by 1-6% on the Bombay Stock Exchange.

The committee recommends farmers should be paid Fair and Remunerative price (FRP) as minimum cane price. The report says that the government should buy sugar from market for sale to poor and scrap minimum distance rule for mills in long-term.

The committee also recommends abolishing control of 5-10% duty on exports and imports and scrap of state controls on sale of sugar.