Major sugar stocks, which witnessed consistent uptrend in June and July and remained almost flat in August, have started to slip by small margins. The stocks had witnessed upward trends following relaxation in levy norms, but the raw sugar import imbroglio pulled down prices.
Among the major sugar stocks, at the end of trading today on Bombay Stock Exchange (BSE), Balarampur Chini Mills closed at Rs 119.90, down 0.08 per cent from its previous close. Bannari Amman Sugar closed at Rs 150.10, down 0.92 per cent, with Bajaj Hind., at Rs 56.75 weaker by 2.91 per cent.
Kesar Enterprises at Rs 8.80 diminished 3.83 per cent, Sakthi Sugars at Rs 8.15 down 5.23 per cent, Ravalgaon Sugar at Rs 2486 declining 32 per cent and Ugar Sugar at Rs 57.85 slipping 7.78 per cent.
Penny stock Piccadiy Sugar & Allied moved up 7.41 per cent, Venus Sugar rose 5.88 per cent at Rs 1.80, Rana Sugars firmed up 3.90 per cent at Rs 4.00, Dhampur Sugar rose 3.57 per cent at Rs 14.50 and Rajshree Sugar rose 1.38 per cent at Rs 11.05.
The domestic sugar industry is in a state of shocked inaction for some time now, with perceived threat from imminent decontrol and continuing overhang of stocks.
Mills looking at opportunities to improve topline and bottomlines have made little headway in the market.
In an effort to beat the system, some resourceful mills had hit upon the idea of duty-free raw sugar import under advance licensing for executing export orders. Sugar Development Council members were upset over such raw sugar imports, saying such imports were suicidal and demanding their stoppage.
It is obvious that the government has failed to formulate a just and fool-proof advance licensing policy and input-output norms, analysts said. The shortcomings in the policy which have been exposed now were embarrassing, they added.
