Indian sugar mills association

Sugar stocks gain on talk of export nod

Date:	10 Jan 2012

Source:	The Business Line

Reporter:	BL Bureau

News ID:	832

Pdf:	news-graphic.pdf
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New Delhi, Jan. 9: Sugar stocks gained in a weak market on Monday on reports that the Government may consider the issue of allowing further exports.

Shree Renuka Sugars Ltd and Triveni Engineering and Industries Ltd gained the maximum of over seven per cent on Monday on the BSE, followed by Bajaj Hindustan Ltd and Simbhaoli Sugars Ltd.

Shree Renuka Sugars Ltd gained 7.34 per cent to close at Rs 28.50, while Triveni Engineering gained 7.49 per cent to end at Rs 15.06. Mawana Sugars gained 5.37 per cent to end at Rs 15.50, while DCM Shriram Industries ended 4.09 per cent higher at Rs 41.95. Simbhaoli Sugars Ltd gained 4.84 per cent to close at Rs 29.25, while the Balrampur Chini scrip ended 2.95 per cent higher at Rs 40.10.

High-level meeting

Agencies reports on Sunday suggested that the Food Ministry may move a proposal to convene meeting of the Empowered Group of Ministers headed by Finance Minister, Mr Pranab Mukherjee, next week to consider the issue of allowing further exports.

The sugar producers have been seeking approval for further exports to take advantage of the relatively high global prices, which would have helped them with cash flows in the peak crushing season. The Indian producers have a window till March when the Brazilian sugar enters the export market.

Any delay in export approval may put the sugar millers in a spot as cane arrears are expected to start building up from middle of January, by which time their existing credit drawal limits would have been exhausted.

India is witnessing a bumper cane production and output. According to ISMA, it is projected at 26 million tonnes for the 2011-12. In November, the Government had approved exports of one million tonne. In the past month, release orders have been issued for 4.2 lakh tonnes.

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