Sugar stocks turns sweeter in the new year

Sugar stocks turned a tad sweeter in the new year piggy backing on reports that India, the world's biggest consumer of sugar, may allow mills to import the raw sweetener duty free in two weeks to ease local shortage and prevent an increase in domestic prices before elections next year.

Output in India, the world's biggest producer of the sweetener after Brazil, is expected to drop in 2009 after yields fell in the main growing areas.

Analysts maintain that the import would help mills work off season too, hence the buoyancy in most sugar counters. Mills need raw sugar for compensating the shortfall in sugarcane production to meet their output target.

The government has said it plans to allow refiners to buy sugar from overseas for processing and sale in the local market without paying a 60% duty.

The stock of Upper Ganges was ruling at Rs 42, up 5% around 1.00 pm, while Renuka Sugar was trading at 75.10 up 2.18% on the BSE. Balrampur Chini was trading at Rs 51.55, up 3.51% on Wednesday 1.00 pm.

Industry perspective apart Bajaj Hindustan is one counter that has been soaring post settlement of the long pending dispute between the Bajaj Brothers. The stock ended at Rs 75.60 up 4%.