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The country’s biggest sugar producer Bajaj Hindustan and other sugar companies surged on the Bombay Stock Exchange today after the Government allowed shipment of five lakh tonnes of the sweetener yesterday.
Sugar stocks rallied in today’s trade led by Bajaj Hindustan, which jumped nearly 4 per cent to a high of Rs 69.35 on BSE. Similarly, Simbhaoli Sugars touched a high of Rs 39.45 and was trading at Rs 38.50, up 3.49 per cent on BSE.
The Empowered Group of Ministers (EGoM) on food yesterday decided to permit the export of five lakh tonnes of sugar as the country’s production is estimated to outstrip demand after a gap of two years.
After the announcement, stocks of other sugar companies, including Balrampur Chini Mills (up 4.52 per cent) and Dhampur Sugar Mills (3.76 per cent) rallied.
The other sugar companies that participated in the rally included Dwarikesh Sugar (5.36 per cent), EID Parry (6.66 per cent), Shree Renuka (5.55 per cent), Oudh Sugar (8.84 per cent) and Uttam Sugar(1.99 per cent).
The country’s sugar production is estimated to rise to 24.2 million tonnes in the 2011-12 season (October-September) from around 19 million tonnes in the previous year. The annual demand is pegged at 22-22.5 million tonnes.
According to industry data, mills have produced around 24 million tonnes of sugar till June 15 of the 2010-12 season.
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