Sugar stocks gain on decontrol hopes
Dhampur Sugar Mills, Bajaj Hindustan, Shree Renuka Sugars and Balrampur Chini Mills are up 1-5% on BSE.
Shares of sugar manufacturer are trading firm in otherwise subdued market in morning trades on report that the government is likely to consider a proposal on sugar decontrol this week.
Dhampur Sugar Mills has rallied 5.1% to Rs 52.25, followed by Bajaj Hindustan (up 3.3% at Rs 23.20), Shree Renuka Sugars (3% at Rs 27) and Balrampur Chini Mills (1.4% at Rs 49.70) on BSE. The benchmark index Sensex is up 0.12% at 1023 hours.
“The proposal on removal of levy sugar obligation may come before the Cabinet Committee on Economic Affairs (CCEA) this week,” the PTI report suggests quoting Food Minister K V Thomas.
Under the levy sugar system, mills are required to sell 10% of their output to the Centre at cheaper rates for onward supply to ration shops, costing Rs 3,000 crore to industry annually, added report.
Dhampur Sugar Mills has rallied 5.1% to Rs 52.25, followed by Bajaj Hindustan (up 3.3% at Rs 23.20), Shree Renuka Sugars (3% at Rs 27) and Balrampur Chini Mills (1.4% at Rs 49.70) on BSE. The benchmark index Sensex is up 0.12% at 1023 hours.
“The proposal on removal of levy sugar obligation may come before the Cabinet Committee on Economic Affairs (CCEA) this week,” the PTI report suggests quoting Food Minister K V Thomas.
Under the levy sugar system, mills are required to sell 10% of their output to the Centre at cheaper rates for onward supply to ration shops, costing Rs 3,000 crore to industry annually, added report.