Sugar shares rally on decontrol buzz

Bajaj Hind, Balrampur Chini Mills, Shree Renuka Sugars and Dhampur Sugar Mills are up 4-5% on the BSE.d Rs 48.20 respectively.

Shares of sugar companies have rallied up to 5% in early noon deals on the Bombay Stock Exchange on partial decontrol buzz.

“The food ministry has decided to seek Cabinet approval to lift controls on sugar,” the Economic Times report suggests.

Sugar decontrol was strongly recommended last year by a committee led by C Rangarajan, the influential head of the economic advisory council of the prime minister.

Currently, mills have to sell 10% of total production to the government at Rs 19.01 per kg, a fraction of the wholesale market price of Rs 34 per kg, for public distribution through ration shops, added report.

Among individual stocks Dhampur Sugar Mills has rallied 5.5% to Rs 48, followed by Bajaj Hindustan and Balrampur Chini Mills are up 5% each at Rs 24 and Rs 48.20 respectively.

Shree Renuka Sugars has surged 4% to Rs 29.50 and Ravalgaon Sugar Farm is up by 3% at Rs 4,498.