Avadh Sugar, Dharani Sugar, and Uttam Sugar, among others, are all rising in trade, while frontline sugar names are witnessing profit booking. Balrampur Chini, Shree Renuka Sugar and Triveni Engineering are all down up to 4 percent.
Shares of majority sugar stocks are soaring in trade on September 19, 2018 as investors cheered a likely package announcement by the government to boost exports.
The likes of Avadh Sugar, Dharani Sugar, and Uttam Sugar, among others, are all rising in trade, while frontline sugar names are witnessing profit booking. Balrampur Chini, Shree Renuka Sugar and Triveni Engineering are all down up to 4 percent.
News agency PTI reported that the Union Cabinet is likely to consider a Rs 4,500 crore plan to more than double the production assistance paid to sugarcane farmers and transport subsidy to mills exporting the sweetener, sources said.
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The proposal to raise production assistance to Rs 13.88 per quintal to farmers and transport subsidy to mills for exports of five million tonnes of surplus sweetener is part of government plan to clear more than Rs 13,500 crore arrears sugar mills have towards farmers.
According to sources, the Cabinet Committee on Economic Affairs (CCEA) will take up the food ministry's proposal Wednesday under which production subsidy to farmers has been increased to 13.88 per quintal for 2018-19 from Rs 5.5 in the current marketing year.
Sources said the government will have to bear about Rs 4,500 crore on account of these measures to help sugar mills and cane farmers. These steps will enable mills to export sugar and clear cane arrears, which currently stand at Rs 13,567 crore. Mills in Uttar Pradesh owes the maximum at Rs 9,817 crore to cane farmers, they added.
(With inputs from PTI)