Avadh Sugar & Energy, Uttam Sugar Mills, Dhampur Sugar Mills and EID Parry were up in the range of 5 per cent to 8 per cent on the BSE. In comparison, the S&P BSE Sensex was up 0.19 per cent at 41,331 points at 02:14 pm.
Among individual stocks, Dwarikesh Sugar Industries soared 15 per cent to Rs 38.25, surging 23 per cent in the past two days on the back of an over five-fold jump in trading volumes. A combined 9.8 million shares changed hands on the counter on the NSE and BSE till 02:19 pm.
Indian Sugar Mills Association (ISMA) in its latest press release said all- India sugar production is down 35 per cent year-on- year (YoY) at 4.58 million tonne as on 15 December. The industry body has projected this year’s sugar output at 26.0-26.5 million tonne, which is lower by 7.0 million tonne YoY.
Shares of Balrampur Chini Mills hit an over 13-year high today. The stock was up 3 per cent at Rs 188, its highest level since May 2006 on the BSE.
“Sugar production in the upcoming season is now estimated to decline due to lower cane acreage in some parts of the country. So while the sugar inventory in India remains high, the demand-supply scenario is expected to be more balanced going forward. This combined with various initiatives such as incentives on exports recently announced will lead to an overall improved operating environment in the coming quarters,” the management of Balrampur Chini Mills said while announcing Q2 results on November 11, 2019.
"With regards to exports, millers have signed contracts for about 2.0 million tonne of sugar to date and another 3.0 million tonne are likely in the upcoming months. Thus, lower cane production, higher diversion to ethanol and a pickup in exports should lead to lower inventory levels in India by the end of the season", analysts at Elara Capital said in a sector update.