Shares of sugar companies have rallied in an otherwise weak market, after the government removed the cap on sugar exports and placed the commodity under the open general licence category.
Shree Renuka Sugars, Bajaj Hindustan, Balrampur Chini Mills, Triveni Engineering and Industries and EID Parry are trading higher by 3-12% on back of huge volumes.
“The high-level meeting on farm exports on Wednesday has decided to remove all curbs on export of sugar by putting it under the open general license (OGL) and also abolish the export floor price for onion," the report suggests.
However, in any case, domestic sugar mills are not hopeful of selling more than 1-1.5 million tonne of sweetener aboard as international prices have dropped at record lows with new Brazilian crop expected by June, added report.