Higher levy fails to sweeten sugar stocks

Shree Renuka Sugars slipped to a low of 194 and finally ended at Rs 196, down 3% from the precious close. The counter clocked volume of  1.277 million shares on the BSE.

Balrampur Chini setlted at its day's low at Rs 119, down 2% from the previous close. The counter clocked volume of 784,488 shares on the BSE.

Bajaj Hindustan dropped to a low of Rs 178 and finally ended at Rs 180, down 2% from the previous close.

Andhra Sugar plunged 8% to Rs 144 and Dwarikesh Sugar slumped 4% to Rs 104.
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(Updated at 1048hrs)

Sugar stocks continue to remain subdued in spite of positive news for the sector.

The food ministry has decided to raise the levy price at which it buys sugar from mills to supply the public distribution sytem in Maharashtra (50%) and Uttar Pradesh (63%). The two states account for 55% of India's sugar output.

The new levy price will benefit some of the UP based companies like Bajaj Hindustan and Balrampur Chini.

Sugar prices were already at a record high after doubling to Rs 35 a kg since laast September. However, none of the sugar stocks have reacted to this news.

Bajaj Hindustan has slipped 1.3% to Rs 181. The stock opened at Rs 184 and touched a high of Rs 186. Over 226,909 shares have been traded on the BSE so far.

Balrampur Chini Mills opened at Rs 123 and is now at its low of Rs 121 - down over 1%. The counter has clocked a volume of 272,469 shares.

Shree Renuka Sugar has dipped 3% to a low of Rs 196. The counter has witnessed trades of over 393,961 shares on the BSE so far.

Andhra Sugar has plunged 5.5% to Rs 148.

Dwarikesh Sugar and Oudh Sugars have dropped 2.2% each to Rs 106 and Rs 76, respectively.

Bannari Amman Sugar and Dhampur Sugar are flat at Rs 1,296 and Rs 100, respectively.