Shares of sugar companies have fallen by upto 12% from their respective intra-day highs on the BSE after the Cabinet on Wednesday approved Rs 85 billion bailout package for the sugar industry.
At 02:27 pm: Triveni Engineering & Industries, Dwarikesh Sugar Industries, Balrampur Chini Mills, Kesar Enterprises, Magadh Sugar & Energy and Simbhaoli Sugars were trading down in the range of 5% to 8% on the BSE. On comparison, the S&P BSE Sensex was up 0.50% at 35,079 points.
The package includes Rs 45 billion soft loans for building ethanol production capacity and creating a 3 million tonne stockpile to soak up excess supply, the PTI report suggested.CLICK HERE TO READ FULL REPORT
A bailout package has been worked out as sugar mills' financial health has worsened due to sharp fall in prices following a record sugar production of over 31.6 million tonnes so far in the 2017-18 marketing year (October-September).