Sugar stocks jump as price touch record high

Sugar stocks have jumped this morning as prices of the commodity soared, following UP government's decision to ban imports of raw sugar. Ex-mill sugar price in the state is at a record high of Rs 3,700 a quintal. Prices have gone up 7-8% in one month, though crushing season is on.

The Union government has allowed duty-free import of raw sugar to tide over the domestic production shortfall. In the 2008-09 season ending October 2009, domestic sugar output fell 42 per cent to 15 million tonne, causing retail sugar prices to more than double. Currently, sugar is selling at Rs 42-43 a kg in retail.

UP is the country's second biggest sugar producer after Maharashtra, and home to top producers like Bajaj Hindusthan and Balrampur Chini Mills. The UP sugar industry is also estimated to be incurring additional warehousing charges of Rs 5 crore every month.

Shree Renuka Sugars has gained 1.2% at Rs 225. Over 10,900 shares have changed hands at the counter so far. Bajaj Hindustan has added 1% to Rs 227. Around 17,117 shares have been traded on the BSE.

Balrampur Chini Mills is up around 1% at Rs 134 with trades of over 13,450 shares.

Triveni Engineering and Industries has added 1.12% to Rs 109. Dhampur Sugar Mills has jumped 2.3% to Rs 139. Dwarikesh Sugar is up 1.5% at Rs 113.

Simbhaoli Sugars has rallied 2.6% to a new 52-week high of Rs 77. Uttam Sugar Mills has surged 5% to its upper circuit of Rs 70.05. Around 510 shares have been traded with 1,400 buy orders pending at the counter.

However, Andhra Sugar has slipped 1% to Rs 119.

source: business-standard