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Sugar shares gain ahead of Cabinet meet on decontrol

Bajaj Hindustan, Shree Renuka Sugars, Balrampur Chini Mills, Dhampur Sugar Mills, and EID Parry are trading higher in the range of 1-4% on BSE.

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SI Reporter Mumbai
Last Updated : Mar 18 2013 | 1:04 PM IST
Shares of sugar manufacturer are trading firm on the bourses in otherwise weak market in noon deals on reports that the Union Cabinet may discuss a partial decontrol of the sugar sector today.

Bajaj Hindustan, Shree Renuka Sugars, Balrampur Chini Mills, Dhampur Sugar Mills, and EID Parry are trading higher in the range of 1-4% on BSE. The benchmark Sensex however, is down around 1% at 19,272 at 1056 hours.

“The Union Cabinet may discuss on Monday the much-awaited measure to abolish the levy-sugar mechanism, under which private millers are required to sell a specified amount of the sweetener to the government at concessional rates,” the Business Standard report suggests.

However, additional excise might have to be imposed on sugar to offset the increased subsidy burden, if the move takes place, added report.

Among the individual stocks, Dhampur Sugar Mills is up 4% to Rs 48.85, followed by Bajaj Hindustan and Shree Renuka Sugars, up nearly 2% each at Rs 22.15 and Rs 26.95 respectively, while EID Parry is up 1% at Rs 165.

 

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First Published: Mar 18 2013 | 12:14 PM IST

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