NEW DELHI: Most sugar stocks traded with healthy gains in Thursday's session amid reports that the central government is mulling over framing new sugar export policy to reduce glut and address the concerns of the depressed sugar industry.
ETNow reported today that the PMO will work with Food Ministry on new sugar policy post the Budget and may decide on rolling out an export-linked subsidy scheme for sugar mills.
The new sugar policy will likely be rolled out from the next season, beginning October.
The report quoted government sources and said that the sugar mills will be required to maintain a buffer stock of 50 lakh tonne for any eventuality, which will cost nearly Rs 2,100 crore and will help lift sugar prices.
Following the report, shares of Rajshree SugarsNSE 9.41 % & Chemicals (up 20 per cent), Avadh Sugar & Energy (up 9.99 per cent), Triveni Engineering & Industrie ..
Balrampur Chini Mills (up 4.17 per cent), Uttam Sugar MillsNSE -1.67 % (up 4.15 per cent), K.M.Sugar Mills (up 3.90 per cent), Magadh Sugar & Energy (up 3.65 per cent), Rana Sugars (up 3.64 per cent) and Riga Sugar Company (up 3.57 per cent) were also among the gainers.
The sugar industry has been grappling with concerns over overproduction amid tepid demand of late.
Experts suggest that boosting exports and diverting some sugar cane juice for ethanol production are the steps that can help the depressed sugar sector.
Source: economictimes.indiatimes.com