Stocks

Sugar stocks slump as CCI imposes penalty on sugar mills, trade associations

BL Internet Desk Sept 21 | Updated on September 21, 2018 Published on September 21, 2018

Sugar stocks today fell as the Competition Commission of India has imposed a penalty of Rs 38 crore on 18 sugar mills and two trade associations, ISMA and EMAI, for rigging bids in joint tenders floated by public sector oil marketing companies.

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

Bajaj Hindusthan Sugarhad on Wednesday said that the Competition Commission of India has imposed a penalty of Rs12.35 crore for alleged contravention of provisions of the Competition Act. The order relates to a joint tender floated by oil marketing companies for supply of ethanol. The comapny said that it will appeal against the order.

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Bajaj Hindusthan's stock posted biggest intraday percentage fall since May 14. Bajaj Hindusthan's stock had 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 that the government may consider a proposal to get mills to export 5 million tonnes of sugar by incentivising overseas sales in the 2018/19 season.

(With inputs from Reuters)

Published on September 21, 2018
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