Sugar shares in demand

Balrampur Chini, Bajaj Hindustan, Shree Renuka Sugars, Dhampur Sugar and Mawana Sugars are up 4-8% on BSE.

Shares of sugar manufactures are in demand and trading higher by up to 7% on the bourses on reports that the government may give some relaxations to the sugar industry after the World Trade organization (WTO) rejected India's contention on raw sugar export subsidy.

Dhampur Sugar Mills and Oudh Sugar Mills have rallied 8% each at Rs 55.25 and 24.45 respectively on the Bombay Stock Exchange (BSE).

Balrampur Chini Mills and Bajaj Hindustan up 7% each at Rs 72.85 and Rs 24.15 respectively, followed by Shree Renuka Sugars (up 5% to Rs 21.30) and Mawana Sugars (4% at Rs 13.25).

The WTO has not accepted the view of the Indian government on the raw sugar export subsidy whereby it had stated that the export subsidy is aimed at cane millers and farmers and not exporters, the Business Standard report suggests.

To this effect, sources said, some relaxations may be given to the sugar industry through some other scheme for their domestic operations, if this scheme gets discontinued. However official sources said that the scheme will run its full course till end of September 2014. The review will happen for its next tenure, added report.