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Sugar stocks sweeten on decontrol hopes

Sugar stocks gained 1-7 percent on Wednesday on reports that food minister will seek a cabinet approval for sugar decontrol.

February 06, 2013 / 12:19 IST
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Sugar stocks gained 1-7 percent on Wednesday on reports that food minister will seek a cabinet approval for sugar decontrol.

The Economic Times reported that the food ministry has decided to seek Cabinet approval to lift controls on sugar, the first time such a proposal will be taken to the highest decision-making body of the government since the sector was brought under strict regulation 50 years ago. In October 2012, the Rangarajan Committee recommended deregulation of the sugar sector by giving freedom to mills to sell sugar in the open market. The crux of the recommendation is to use the Fair and Remunerative Price (FRP) fixed by the central government as the base price for sugarcane, while Rangarajan has also suggested that sugar mill should share a part of their market gains with farmers. Rangarajan has said that 70 percent of market prices realised from sugar and sugar products can be given to cane growers. Major sugar companies Balrampur Chini, Bajaj Hindusthan and Shree Renuka Sugars shot up 4-5 percent.

Company NamePrices at 12 hours IST% Change
Kesar Enterpris397.14
Dhampur Sugar48.35.92
Dharani Sugars36.355.21
Balrampur Chini48.45.1
Bajaj Hind245.03
Simbhaoli Sugar24.54.93
Shree Renuka29.554.23
Dwarikesh Sugar33.953.98
Sakthi Sugars24.13.66
Oudh Sugar Mill24.92.68
KCP Sugar22.32.53
Uttam Sugar221.85
Rajshree Sugars43.351.05
Andhra Sugar144.60.91
Bannariamman907.950.88
Thiru Arooran660.69
EID Parry171.60.2
first published: Feb 6, 2013 12:19 pm

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