Sugar stocks decline after cabinet allows states to levy stock limits on sugar

Shares of three sugar companies declined 0.86% to 1.78% at 12:20 IST on BSE after the government decided to allow states to impose and enforce stock limits to check the price rise in sugar.

The announcement was made after market hours yesterday, 27 April 2016.

Meanwhile, the S&P BSE Sensex was down 173.27 points or 0.67% at 25,890.18.

Bajaj Hindusthan (down 1.78%), Balrampur Chini Mills (down 0.86%) and Shree Renuka Sugars (down 1.04%) declined.

The Union Cabinet chaired by the Prime Minister Narendra Modi has given its approval to bring sugar under the purview of imposing stock holding limits on dealers of sugar, keeping in view the recent upward trend in sugar prices. The government has noticed that in spite of sufficient availability of sugar stocks with the sugar mills, the wholesale and retail prices have shown a spurt.

The government took stock of the availability of sugar and different factors contributing to rise in market prices of sugar across the country. In order to check the inflationary tendencies in sugar and to reduce hoarding by wholesalers and retailers, government felt an immediate need to bring sugar within the purview of stock limits. The decision will empower state and central agencies to impose stock limits and regulate supply, distribution, storage and trade of sugar to bring down sugar prices at reasonable level by curbing unscrupulous trading.

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