Sugar companies' stocks surge up to 17%

Sugar stocks hogged the limelight on Wednesday, surging up to 17 per cent, following reports the food ministry is looking at various options, including the barter trade of the sweetener against import of farm items, as part of steps to offload surplus stock and clear cane arrears. Shares of Dwarikesh Sugar zoomed 16.73 per cent, while Dalmia Bharat Sugar surged 13.56 per cent on BSE. Among others, Simbhaoli Sugars jumped 10.50 per cent, Bajaj Hindusthan Sugar rallied 7.57 per cent, Balrampur Chini Mills (6.99 per cent) and Oudh Sugar Mills (2.85 per cent).

After the Prime Minister directed to explore possibility of increasing sugar exports, the Food Ministry is looking at various options including the barter trade of the sweetener against import of farm items, as part of steps to offload surplus stock and clear cane arrears.

Last week, Prime Minister Narendra Modi called a meeting to discuss the crisis in sugar sector which has resulted in cane arrears of over Rs 14,000 crore to farmers. Modi directed ministries concerned to boost sugar exports and increase ethanol blending with petrol. According to sources, "The Food Ministry is working on various options to open the export line for sugar. It is also looking at allowing sugar export under the barter system with countries from where India imports agricultural commodities.

" India is a major importer of edible oils from Indonesia and Malaysia, while pulses from Canada, Myanmar and Australia.

The Ministry is also examining the feasibility of making it mandatory on part of sugar mills to export certain quantity of sweetener out of total annual production.