Sugar stocks hit hard on stock limit news
Sugar stocks took a beating Tuesday after the government’s decision to impose limits on the amount of sugar that can be stocked.
By ET Bureau |
MUMBAI - Sugar stocks took a beating Tuesday after the government���s decision to impose limits on the amount of sugar that can be stocked.
The government may also raise the price that millers have to pay farmers for cane by up to 50% to tame prices and help lift sugar production out of this year���s expected slump.
After a meeting of the Union Cabinet, home minister P Chidambaram said formal notification of the stock curbs, which would initially apply for four months, would most likely take place on Tuesday.
Traders expect a significant rise in the cane price, which has not been changed in the past two years, during which high production depressed sugar prices and lowered output.
The commodity opened on the lower circuit on the National Commodity and Derivatives Exchange on account of the news of the stock limits.
At 10:30 am, Balrampur Chini was down 7.94 per cent at Rs 48.70, Shree Renuka Sugars lost 6.49 per cent to Rs 77.10, Bajaj Hindusthan tumbled 9.01% per cent to Rs45.45 and Sakthi Sugars fell 4.83 per cent to Rs 25.60.
The government may also raise the price that millers have to pay farmers for cane by up to 50% to tame prices and help lift sugar production out of this year���s expected slump.
After a meeting of the Union Cabinet, home minister P Chidambaram said formal notification of the stock curbs, which would initially apply for four months, would most likely take place on Tuesday.
Traders expect a significant rise in the cane price, which has not been changed in the past two years, during which high production depressed sugar prices and lowered output.
The commodity opened on the lower circuit on the National Commodity and Derivatives Exchange on account of the news of the stock limits.
At 10:30 am, Balrampur Chini was down 7.94 per cent at Rs 48.70, Shree Renuka Sugars lost 6.49 per cent to Rs 77.10, Bajaj Hindusthan tumbled 9.01% per cent to Rs45.45 and Sakthi Sugars fell 4.83 per cent to Rs 25.60.
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
ADVERTISEMENT
