| While the Sensex declined by 349 points over its previous close, share prices of sugar companies appreciated by 1 to 4 per cent following the partial lifting of the ban on exports by the Centre.
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| Even sugar prices appreciated by Rs 15-20 per quintal to Rs 1645-1650 per quintal (ex-factory).
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| Though exports will not be profitable as international prices are low, the players are expected to keep the export channel open to ensure that local prices stay firm.
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| The share of Balrampur Chini closed at Rs 228.20, up 4 per cent over the previous day, while Dhampur Sugar at Rs 93, up 4.5 per cent higher over the previous close. Bajaj Hindusthan stock increased from Rs 225.95 to Rs 228.20.
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| However, the damage to sugar industry has already been done and the advantage of exporting sugar is largely lost.
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| International prices have declined by $100 to $345 a tonne since the ban was imposed. In July, when export was banned the realisation on export was Rs 200 per quintal higher compared to domestic sales. Now, the difference is only marginal.
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| Companies like Renuka Sugar, Dhampur Sugar, Sakthi Sugar, Simbhaoli Sugar, Eid Parry and Thiru Arooran among others had imported about 26 lakh tonne of raw sugar between 2002-03 and 2004-05 seasons (October-September) under the advance licence scheme.
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| Of the total amount, about 10 lakh tonne have been exported so far. |
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