Dhampur Sugar up 5% but sugar stocks trade low

MUMBAI: Sugar stocks recorded decline on the bourses as Indian Sugar Mills Association (ISMA) estimated a fall in sugar production by 43% for 2008-09 season.

ISMA has shown a grim picture for sugar production, which is estimated to fall to 14.6 million tonnes down from 26.4 million tonnes in the previous year. According to India’s agriculture ministry, country’s sugarcane production had dropped 17% last year to 289.23 million tonnes.

The sugar industry is expected to face short supply of cane, which may lead to higher imports. This would disturb the cost structure of sugar makers. Sugar stocks responded negatively to the situation with major stocks trading in red during the day. Dwarikesh Sugar was trading down by over 1% at Rs.64.30, while Sakthi Sugars Ltd was trading at Rs.40.60 with a loss of over 1% during the afternoon trading session on the BSE.

Balrampur Chini Mills Ltd and Shree Renuka Sugars were trading with marginal losses of close to 0.5%. Bajaj Hindustan Ltd was down by over 1% at Rs.109 during the day.

However, Dhampur Sugar Mills Ltd was trading with close to 5% gains at Rs.50.05 on the Bombay Sock Exchange (BSE).

source: commodityonline