Analysts give thumbs-down to Rs 70 billion sugar bailout package

Analysts say the measures are too little for the sugar companies.

Markets have given a thumbs-down to the government’s Rs 70 billion intervention package (including Rs 4,440 crore in loans to mills to expand ethanol production) for the sugar industry to address the immediate liquidity problems of the industry. 

Most stocks, such as Dwarikesh Sugar, Dhampur Sugar, EID Parry, Kesar Enterprises and Thiru Aroon Sugar are trading lower in the range of 1 per cent to 5 per cent on the BSE on Thursday – extending their Wednesday’s fall of 3 per cent to 12 per cent. In comparison, the S&P BSE Sensex has gained around two per cent