Sugar stocks jump yet again as ISMA says imports not required

NEW DELHI: Shares of sugar companies surged in trade on Tuesday after the Indian Sugar Mills Association said that there was no need for imports as domestic sugar stocks were adequate.

The association believes that domestic sugar stockpiles are enough to last for the coming 24 months and hence make the need for any imports redundant.

The domestic sugar production is seen declining by 4 per cent this year as adverse climate affected production in sugar bowls of Maharashtra and Uttar Pradesh.

Stocks of Simbhaoli Sugars ended 7.61 per cent, Upper Ganges Sugar (6.58 per cent), Kothari Sugars (3.23 per cent).

The price action in sugar stocks have made analyst turn bullish on the sector. Sugar stocks have surged as much as 82 per cent in the year so far, as internationally supply crunch has made outlook positive for the companies.