Sugar stocks sweeten on hopes of government aid

Shares of ten sugar firms rose by 0.32% to 10.51% at 14:41 IST on BSE on reports that the government is likely to provide financial support to cane farmers for produce sold to sugar mills.

Meanwhile, the S&P BSE Sensex was up 105.83 points, or 0.31% to 33,894.37.

Dwarikesh Sugar Industries (up 10.51%), Triveni Engineering & Industries (up 6.17%), Sakthi Sugars (up 10.89%), Bajaj Hindusthan Sugar (up 6.23%), Balrampur Chini Mills (up 7.51%), Dhampur Sugar Mills (up 3.97%), DCM Shriram Industries (up 0.86%), EID Parry (India) (up 0.95%), Simbhaoli Sugars (up 0.72%) and Shree Renuka Sugar (up 0.32%) edged higher.

The S&P BSE Sensex was up 139.60 points, or 0.41% at 33,928.14.

As per reports, the government is likely to provide financial support to cane farmers for produce sold to sugar mills. The government plans to pay Rs 55 a tonne to cane farmers, while mills would pay the rest of the state-set price.

Every year, the government fixes the price that mills must pay to cane growers, but Uttar Pradesh state, the biggest producer, usually raises the rate to placate farmers. For the 2017/18 season, the government fixed the cane floor price at Rs 255 per 100 kg, while Uttar Pradesh raised the rate to Rs 315 per 100 kg, reports indicated.

The sugar industry is reeling under a glut and struggling to export because of low global prices.

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