Sugar stocks rise as govt plans incentives for sector
Shares of sugar companies were back in demand today on government's decision to give incentives to companies that export the sweetner, giving some cushion to the BSE Sensex which lost nearly 64 points at 1340 hours.
By PTI |
MUMBAI: Shares of sugar companies were back in demand today on government's decision to give incentives to companies that export the sweetner, giving some cushion to the BSE Sensex which lost nearly 64 points at 1340 hours.
The government would give a subsidy of as much as Rs 1,450 a tonne to sugar exporters while an incentive of Rs 440 a tonne will be provided on the export of raw sugar.
The government would also consider creating buffer stocks of 20 lakh tonnes for two years in view of the high production of 250 lakh tonnes estimated this year.
Market observers said the incentives are expected to give a boost to sugar stocks and the subsidy will provide a cushion to sugar makers.
Shares of Bajaj Hindusthan Ltd, the country's biggest sugar producer, rose Rs 8.35, or 4.95 per cent, at Rs 176.90, while that of its closest rival Balrampur Chinni Mills gained Rs 2.40, or 3.86 per cent, at Rs 64.50 in intra-day trading.
Other gainers in this segment were Dhampur sugar by Rs 1.35 at Rs 71.40, Triveni Engineering by Rs 180 at Rs 50.55 and Bannariaman Sugar by Rs 20.55 at Rs 662.
Meanwhile, the benchmark BSE Sensex was down 63.68 at 13,222.25 after opening firm in the morning.
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