Cash-starved sugar sector witnessed a mixed trend in its stock in the Wednesday trade as the government might consider ₹45,000 crore package for the industry today.
The package will boost the sugar sector by infusing double production assistance to growers and transport subsidy for export ranging to 5 million tonnes or less, effective from next marketing session commencing in October, reported MoneyControl
Latest trend of Indian Sugar Stocks
- Thiru Arooran Sugars (+5.92%), Gayatri Sugars (+4.99 %), Parvati Sweeteners and Powers (+4.97%), Kesar Enterprise (+4.88%), and Piccadily Sugar (+4.82%) were the five top players which jumped almost 5%.
- Other stocks which are in green zone today includes Dhampure Specialty Sugars (+3.91%), Simbhaoli Sugars (+3.52%), Bannari Amman Sugars (+2.78%), Ugar Sugar Works (+2.26%) and KCP Sugar and Industries (+2.12%).
- On the contrary, Rajshree Sugars & Chemical (-5.20%) and Empee Sugars & Chemicals (-4.65%) slipped the most loosing nearly 5%.
- Adding to the loser’s list, Magadh Sugar & Energy (-3.51%), Dhampur Sugar Mills (-2.89%), Ponni Sugars (Erode) (-2.47%), Mawana Sugars (-2.37%), Triveni Engineering & Industries (-2.20%) and Avadh Sugar & Energy (- 1.67%) were trading red in the morning session.
Owing to the glutted market of the sugar sector, the government is likely to retreat the industry by planning a second package. India’s sugar production is expected to reach a high of 32-million tonnes at the end of the 2017-18 marketing session.
A proposed government policy suggests that raising the production assistance paid to growers from ₹ 5.50 per quintal to ₹13.88 per quintal will counterbalance the cost of sugarcane production.
Moreover, In order to build ethanol capacity, the government notified a ₹8,500 crore package for sugar industry. The package constituted of a soft loan worth ₹4,440 crore. This will provide a subsity of ₹1,332 crore on the interest rate.
Apart from this, the governing body also provided its consent to raise ethanol price produced directly from sugarcane by 25% in order to restrict the oil import. The price hike also expected to settle the excess stock of approx 10.5 million tonnes of sugar at the end of current season.