Mumbai: With the announcement of sugar export subsidy, stocks of many sugar companies surged. On August 28, Cabinet approved sugar export subsidy for exporting 60 lakh metric tonne of sugar. The policy for the 2019-20 sugar season involves an export subsidy of Rs 10,448 per metric tonne (mt) to sugar mills. The total estimated expenditure government will bear Rs 6268 crore. The subsidy was provided with an intention to reduce the sugar glut in the country.
Most of the sugar stocks today opened with good gains. Around 9:25 am, shares of Shree Renuka Sugars (up 4.57 per cent), Sakthi Sugars (up 4.05 per cent), Dharani Sugars & Chemicals (up 9.24 per cent), Uttam sugar Mills (up 3.77 per cent). Along with this the shares of Bajaj Hindusthan Sugar, Balrampur Chini, Dhampur Sugar Mills, Ugar Sugar, Avadh Sugar, Magadh Sugar also surged (up 1.44 to 3.69 per cent).
The Indian sugar industry has welcomed this move by the government and says this step will be very helpful in clearing the huge cane arrears and reducing the sugar surplus.
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