Sugar companies surge as government approves export subsidy formula

MUMBAI: Shares of sugar companies surged higher in trade after the government ratified the methodology used for fixing the export subsidy on raw sugar during April-September period of the 2013-14 marketing year.

The Cabinet Committee on Economic Affairs (CCEA) has given approval to "ratify the methodology adopted to recalculate the incentive rate for bi-monthly periods of April-May 2014, June-July 2014 and August-September, 2014", an official statement said.

"The incentive rate for bi-monthly periods of April-May 2014, June-July 2014 and August-September 2014 have been finalised respectively at Rs 2,277, Rs 3,300 and Rs 3,371 per tonne. Total financial help is expected to be around Rs 200 crore," the statement added.

At 11:15 a.m.; Bajaj Hindusthan was up 5.14 per cent, Balrampur Chini gained 3.64 per cent, Dwarikesh Sugar was 7.08 per cent higher and Upper Ganges gained 7.25 per cent.