Sugar stocks gain on hopes of govt aid, Dhampur Sugar Mills, Dwarikesh Sugar Industries shares skyrocket

Written by PTI | Mumbai | Updated: Nov 21 2013, 02:17am hrs
Shares in sugar companies today surged as much as 19 per cent on hopes that the government will decide on the issues facing the sector, including fall in its prices. Dhampur Sugar Mills shares surged 18.98 per cent to Rs 33.85, while Dwarikesh Sugar Industries shot-up by 18.32 per cent to Rs 23.90 and Sakthi Sugars by 17.67 per cent to Rs 16.65 on the BSE.

Among others, Mawana Sugars shares spurt 17.15 per cent, Oudh Sugar - 15.41 per cent, Bajaj Hindusthan - 13.85 per cent, Balrampur Chini Mills - 9.64 per cent, Shree Renuka Sugars - 8.08 per cent and EID Parry - 2.33 per cent.

"Sugar stocks rose on hopes of government aid to the sector which is grappling with financial problems," said Jagannadham Thunuguntla, Chief Strategist and Head of Research, SMC Global Securities Ltd.

Faced with huge losses, more than 60 private sugar mills in Uttar Pradesh have decided not to commence crushing operations this year until a "viable" sugarcane price is fixed by the state government.

UP mills are facing financial problems because of depressed sugar prices. They have not been able to pay cane arrears of about Rs 2,400 crore. They have also incurred cash loss of Rs 3,000 crore last year.

Agriculture Minister Sharad Pawar today said government will take decision on issues facing sugar sector, including fall in prices, in 8-10 days.