Sugar stocks rally amid decontrol buzz

https://economictimes.indiatimes.com/markets/stocks/stocks-in-news/sugar-stocks-rally-amid-decontrol-buzz/articleshow/9098087.cms

MUMBAI: Sugar stocks advanced by up to 6 per cent on the BSE today amid media reports that the government may consider the proposal to decontrol the sector in few days.

India's biggest sugar producer Bajaj Hindusthan surged by 4.69 per cent to touch a high of Rs 74.75 on the BSE.

Similarly, Simbhaoli Sugars touched a high of Rs 41.40, up 4.54 per cent from the previous close.

According to media reports, the government is expected to discuss sugar decontrol at a meeting in the next 8-10 days.

Following the buzz, stocks of other sugar companies, including Balrampur Chini Mills rose by 4.23 per cent, Dhampur Sugar Mills by 5.17 per cent, Shree Renuka by 5.91 per cent, Oudh Sugar by 4.75 per cent and Uttam Sugar by 3.11 per cent.

"Sugar is the only sector in which restrictions are still there. The thinking process has started and some pragmatic decision is expected to be taken," the report quoted Agriculture Minister Sharad Pawar as saying at a sugar industry meet in Pune yesterday.

The Empowered Group of Ministers (EGoM) on food last week decided to permit the export of five lakh tonnes of sugar as the country's production is estimated to outstrip demand after a gap of two years.

The other sugar companies which attracted buying included Dwarikesh Sugar (up 5.40 per cent) and EID Parry (up 1.57 per cent).

The rally in the sugar stocks was in-line with the rise in the broader market, with the benchmark index Sens*x trading 50.65 points higher at 18,813.45 at 1125 hours.