Sugar rally involves a grinding halt, some shares hit decrease circuit


NEW DELHI: Sugar stocks tanked as much as 5 per cent in Friday’s commerce after the federal government determined to chop sugar export subsidies for the present season, which ends on September 30.

The federal government subsidy on sugar exports now stands at Rs 4,000 per tonne, stated the Ministry Of Consumer Affairs, Food And Public Distribution. The federal government had earlier accredited subsidies of Rs 6,000 per tonne to encourage cash-strapped mills to export 6 million tonnes of sugar within the present season.

Among the many key gamers, shares of Bajaj Hindusthan Sugar fell 4.eight per cent to Rs 10.90,

declined 2.16 per cent to Rs 306.05, Shree Renuka Sugars fell 2,01 per cent to Rs 14.59 apiece.

Among the many worst-hit shares have been

, which hit the 5 per cent decrease circuit restrict at Rs 14.79. Comparable was the case with Dharani Sugars, which hit its circuit restrict at Rs 11.55. Sakthi Sugars fell 3.08 per cent to Rs 12.60.

“Maintaining in view the agency international sugar costs, we have now diminished subsidy on sugar exports by Rs 2,000 per tonne to Rs 4,000 per tonne with instant impact,” Joint Secretary within the Meals Ministry Subodh Kumar instructed PTI.

Observing that there was a gentle enhance in international costs of sugar due to doubtless shortages on the earth market, Kumar stated, “If there’s a additional enhance in international costs, we’ll additional scale back the subsidy.”

The diminished subsidy fee shall be relevant to export agreements executed on Might 20 or later, he stated.

Commenting on the event, All India Sugar Trade Association (AISTA) Chairman Praful Vithalani stated: “The federal government needs that some sugar commerce ought to happen with out subsidy. Since 5.7 million tonnes of sugar has been contracted already for this yr, the world ought to know that sugar from India shall be out there with out subsidy hereafter.”

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