Most sugar stocks opened August 29 session with healthy gains, a day after Union Cabinet approved export subsidy for exporting 60 lakh metric tonne of sugar.
Giving a big relief to the sugar industry, the Cabinet on August 28 gave its nod to a Rs 6,268 crore subsidy for export of 6 million tonnes of sugar during the 2019-20 marketing year starting October. The move is aimed at liquidating surplus domestic stock and help mills in clearing huge sugarcane arrears to farmers.
Industry watchers say the move is positive for the sector and will benefit sugarcane producers.
“The cabinet announcement for export subsidy support for sugar stocks comes as a breather for the stagnant sugar industry. We hope the benefits percolate down to farmers in the form of pending payments. However, much needs to be done to revive the industry," said Ajay Kakra, Leader - food and agriculture, PwC India.
Around 0925 hours, shares of Dharani Sugars & Chemicals (up 9.24 percent), Mawana Sugars (up 4.92 percent), Shree Renuka Sugars (up 4.57 percent) and Sakthi Sugars (up 4.05 percent) were trading with strong gains on BSE.
Shares of Uttam sugar Mills (up 3.77 percent), Bajaj Hindusthan Sugar (up 3.69 percent), Balrampur Chini (up 3.32 percent), Magadh Sugar (up 3.03 percent), Avadh Sugar (up 3.03 percent), Dhampur Sugar Mills (up 2.14 percent), Dalmia Bharat Sugar (up 2.75 percnet), Dhampur Sugar Mills (up 2.44 percent) and Ugar Sugar Works (up 1.44 percent) also climbed higher.
Equity benchmarks Sensex and Nifty were in the negative territory in the light of weak Asian cues as worries over the US-China trade war and looming recession kept investors away from equities.
Source: moneycontrol.com