Sugar cos surge as govt to allow more exports/news09012012

Shares of sugar companies rose by 1.54% to 13.95% on the BSE on report the government may allow further exports of sugar in the next few days.

At 2.55 pm, Sakthi Sugars up by 13.95%, Rana Sugars up by 10.60%, Dwarikesh Sugar Industries up by 9.01%, Upper Ganges Sugar & Industries up 7.43%, Shree Renuka Sugars up by 7.72%, Dhampur Sugar Mills up by 5.84%, Simbhaoli Sugars up by 5.20%, Bajaj Hindusthan up by 5.09%, Triveni Engineering & Industries up by 5%, KCP Sugar & Industries Corporation up by 3.95%, Balrampur Chini Mills up by 3.21% and Empee Sugars and Chemicals up by 1.54%.

According to the report, the Food Ministry will be moving a proposal next week for convening of the Empowered Group of Ministers (EGoM) on Food, headed by Finance Minister Pranab Mukherjee.

In November 2011, the government had approved the export of one million tonnes of sugar in the 2011-12 marketing year, which started from October 2011.

Report suggested that there is scope for allowing more sugar exports as domestic production is expected to exceed demand and global prices have also started firming up.

The move may reportedly help the Congress in Uttar Pradesh, where around 130 mills contribute 25-30% of the country's sugar production and pay Rs16000 crore to cane farmers every year.

The government has pegged sugar output at 24.5 million tonnes in the 2011-12 marketing year, higher than the estimated annual demand of 22 million tonnes. The sugar industry has estimated 25 million tonnes of production during the year.
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