Sugar stocks jump up to 9.3 pc on Rs 10,540 cr soft loan for industry

Sugar stocks Friday jumped up to 9.3 per cent after the government announced a soft loan of up to Rs 10,540 crore to the sugar industry to help mills clear mounting arrears to cane growers.

Dharani Sugars and Chemicals zoomed 9.31 per cent, Sakthi Sugars rose 6.26 per cent, Thiru Arooran Sugars gained 4.97 per cent, Dwarikesh Sugar Industries rose 4.49 per cent on BSE.

Besides, Simbhaoli Sugars was up 3.84 per cent, Balrampur Chini Mills gained 2.79 per cent, Bajaj Hindusthan Sugar rose 2.64 per cent and Dalmia Bharat Sugar and Industries gained 2.32 per cent on the bourse.

The government Thursday announced a soft loan of up to Rs 10,540 crore to the sugar industry to help mills clear mounting arrears to cane growers, a move that would cost exchequer up to Rs 1,054 crore as interest subsidy.

Sugar cane arrears to farmers have crossed Rs 20,000 crore in the current marketing year 2018-19 (October-September).

"To help the sugar industry clear its cane dues arrears, the Cabinet Committee on Economic Affairs (CCEA) chaired by the prime minister approved the proposal to provide soft loans to the extent of about Rs 7,900-10,540 crore to the sugar industry," an official statement said Thursday.