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Sugar stocks rose up to 7 per cent today amid reports that the government is likely to announce a bailout package of over Rs 7,000 crore to ensure cash-starved mills clear dues to farmers at the earliest.
Shares of Dhampur Sugar Mills soared 6.62 per cent, Avadh Sugar & Energy (6.55 per cent), Mawana Sugars (6.54 per cent), Balrampur Chini Mills (6.28 per cent), Bajaj Hindusthan Sugar (5.79 per cent) and Uttam Sugar Mills (5.79 per cent) on the BSE.
Concerned over mounting cane arrears of more than Rs 22,000 crore, the government is likely to announce a bailout package of over Rs 7,000 crore to ensure cash-starved mills clear dues to farmers at the earliest, sources had said yesterday.
A decision in this regard is expected to be taken at the meeting of the Cabinet Committee on Economic Affairs (CCEA) on June 6, the sources added.
Sugar mills are unable to make payment to cane growers as their financial health has worsened due to a sharp fall in sugar prices after a record production of 31.6 million tonnes so far in the 2017-18 season (October-September).
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