Sugar stocks plunge up to 10%

Sugar stocks tumble up to 10 per cent Wednesday despite the Cabinet approving a Rs 5,500-crore package for the industry.

Shares of KCP Sugar & Industries Corporation dived 9.77 per cent, Dhampur Sugar Mills slumped 9.41 per cent, Triveni Engineering & Industries 7.14 per cent, Ponni Sugars 6.40 per cent, Balrampur Chini Mills 5.65 per cent, Dwarikesh Sugar Industries 5.37 per cent and Dalmia Bharat Sugar 5.03 per cent on BSE.

Meanwhile, the broader market also depicted a weak trend, with the BSE benchmark Sensex tumbling 109.79 points to close at 36,542.27.

In third incentive package for sugar mills in four months, the Union government Wednesday announced a Rs 5,500 crore package for the sugar industry, including over two-fold jump in production aid to cane growers and transport subsidy to mills for exports.