Shares of sugar companies are trading higher, bucking the weak trend in the broader market, after the government allowed one million tonnes of sugar export.
The EGoM headed by finance minister Pranab Mukherjee allowed export of a million tonnes of sugar for the 2011-2012 crop marketing year that started in October and also lifted the stock holding limit on the sweetener from November 30.
The move, which came after a persistent demand from millers in the wake of a sharp increase in cane prices, has been welcomed by cooperative sugar millers in Maharashtra, big companies in Uttar Pradesh and also the chief minister of Maharashtra.
Meanwhile, the Empowered Group of Ministers (eGoM) on these subjects, also decided not to extend the stock holding limit on sugar beyond November 30. At present, any sugar trader is not allowed to hold more than 500 tonnes.
Among the individual stocks, DCM Shriram Industries is the top gainer, up nearly 20% at Rs 51. Upper Ganges Sugar & Industries has jumped 13% to Rs 46. Empee Sugars, Eastern Sugar, KCP Sugar and Industries, Rana Sugars, Dwarikesh Sugar, Sakthi Sugars, EID Parry, and Dhampur Sugar are also trading higher by 0.5-9% each.
