Sugar stocks decline 13 per cent

Sugar stocks declined up to 13 per cent on Thursday amid apprehensions that the government may not allow exports to control inflation. Share price of Piccadilly Sugar and Allied Industries plunged 13.29 per cent, while that of Kashipur Sugar Mills declined 9.3 per cent. Shares of market leaders like Bajaj Hindusthan, Shree Renuka Sugars, Balrampur Chini and Simbhaoli Sugars fell two-five per cent.

“The basic reason behind a fall in sugar stocks is the forecast of lower realisation from core business of these companies,” said Sageraj Bariya, an analyst with Angel Broking.

Analysts were earlier anticipating a recovery in the top line and bottom line of sugar companies after the government allowed futures trading in the sweetener and permitted 500,000 tonnes of exports late last year. But, the government may not restore free exports due to rising inflation.