Sugar stocks up ahead of Rangarajan's decontrol report
Sugar stocks gained between 2 percent and 4 percent as the Rangarajan Committee, set up by the prime minsiter's office ( PMO), is going to submit sugar decontrol report to Prime Minister tomorrow, reports CNBC-TV18 quoting NW18.
October 11, 2012 / 14:01 IST
Sugar stocks gained between 2 percent and 4 percent as the Rangarajan Committee, set up by the prime minsiter's office ( PMO), is going to submit sugar decontrol report to Prime Minister tomorrow, reports CNBC-TV18 quoting NW18.
An expert committee on sugar decontrol, headed by PMEAC, chairman, C Rangarajan, was expected to submit this report by September end.On 27 January, Prime Minister Manmohan Singh set up an expert committee, under chairmanship of Rangarajan, to examine issues related to decontrolling the sugar sector.The sugar industry is under government control, right from the level of production to distribution.In early January, the representatives of the apex sugar industry bodies ISMA and NFCSF had sought partial decontrol of the sector, including freedom to sell sugar in the open market and doing away with the levy obligation for the Public Distribution System.Under the levy obligation, sugar mills are required to sell 10 percent of their output to the government at below- cost rates for supply to ration shops.Mills supply levy sugar at 60 percent of the cost of production, resulting in an annual industry loss of about Rs 2,500-3,000 crore.Sugar production in the 2011-12 season (October-September) is expected to be 26 million tonnes, against the annual demand of 22-23 million tonnes. Shares of Bajaj Hindusthan, Dwarikesh Sugar, Oudh Sugar Mill, Rajshree Sugars, Sakthi Sugars, Shree Renuka, Triveni Engineering and Uttam Sugar gained 2-4 percent. Balrampur Chini was up 0.6 percent.(With inputs from PTI) Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
