January 13, 2015
The Economic Times
MUMBAI: Shares of sugar companies gained momentum in a weak market following reports that the Cabinet may increase raw sugar subsidy to about Rs 4,000 per tonne.
The hike is subsidy is being worked out to lower large stockpiles after fifth straight year of bumper crop. The local prices have been affected due to surplus and its hurting finances of sugar mills.
With the help of the incentives, mills say they will be able to sell raw sugar to standalone refineries in Asia and Africa.
Higher incentives would help the sugar companies to bag big export orders in the 2014-15 season.
Indian sugar companies produced 7.5 million tonnes of the sweetener between Oct. 1 and Dec. 31, more than a quarter higher than a year earlier.
At 10:15 a.m.; Bajaj Hindustan was up 4.26 per cent, Balrampur Chini gained 3.13 per cent, Dhampur Sugar was 5.80 per cent higher, Dharani Sugars advanced 9.20 per cent and Mawana Sugars rallied 10.82 per cent.
Reference: http://economictimes.indiatimes.com/markets/stocks/news/government-may-i...