Sugar stocks fall after competition watchdog imposes penalty

Shares of Bajaj Hindusthan Sugar, Dalmia Bharat Sugar and Industries and Balrampur Chini Mills plunged as much as 3.2 per cent-9.1 per cent.

Competition Commission Of India (CCI) on Thursday imposed a penalty of Rs 380.5 million ($5.29 million) on sugar mills and their associations for rigging bids in respect of joint tender floated by oil marketing cos for procurement of ethanol for blending with petrol.

Bajaj Hindusthan said after market hours on Wednesday CCI imposed a penalty of Rs 123.5 million. The company said it will appeal against the order.

Bajaj Hindusthan's stock posted biggest intraday per cent fall since May 14.

Bajaj Hindusthan's stock gained 72 per cent in the last seven sessions following a hike of up to 25 per cent in ethanol purchase prices and on hopes goverment may consider a proposal to get mills to export 5 million tonnes of sugar by incentivising overseas sales in 2018/19 season.