Sugar stocks zoom 16% on CCEA’s nod for sector decontrol

NEW DELHI: Sugar stocks led by BajajHindustan surged over 16 per cent in early trade on Friday, after CCEA cleared partial decontrol of sugar sector by abolishing the requirement for private mills to sell a specified amount of sugar to the government at concessional rates.

Other sugar firms such Balrampur Chini Mills, Shree Renuka, Triveni Engineering and Dhampur Sugar Mills surged over 10 per cent in early trade.

According to analysts, the move is indeed positive for sugar millers as they are no longer required to sell sugar to the government at a discount and will not limit the amount they can sell in the open market.

“With the CCEA nod for sugar decontrol we expect sugar mills to breathe a bit easy as sugar companies no longer have to bear the levy sugar obligation for two years,” LKP said in a report.

At 09:40 am, most sugar stocks have pared most of their early gains but were still trading 5-10 per cent higher.

Bajaj Hindustan was trading 5.1 per cent higher at Rs 22.30. It has hit a low of Rs 22.20 and a high of Rs 24.75 in trade today.

Balrampur Chini Mills Ltd was trading at 4.9 per cent higher 50.10. It has hit a low of Rs 50.10 and a high of Rs 54 in trade today.

Shree Renuka was trading 5.2 per cent higher at Rs 26.35. It has hit a low of Rs 25.90 and a high of Rs 28.35 in trade today.

Triveni Engineering and Industries Ltd was trading 9.1 per cent higher at Rs 18.07. It has hit a low of Rs 17.85 and a high of Rs 19.05 in trade today.

Dhampur Sugar Mills Ltd was trading at 7.6 per cent higher at Rs 49.15. It has hit a low of Rs 47.25 and a high of Rs 52 in trade today.