Sixteen sugar shares rose by 3.86% to 14.18% at 9:35 IST on BSE on reports the government on Thursday, 4 April 2013, decontrolled the sugar sector.
Oudh Sugar Mills (up 14.18%), Dhampur Sugar Mills (up 12.92%), Sakthi Sugars (up 12.42%), Rana Sugars (up 11.11%), Triveni Engineering & Industries (up 11.11%), Dwarikesh Sugar Industries (up 11.04%), Empee Sugars and Chemicals (up 9.62%), KCP Sugar & Industries Corporation (up 9.21%), Balrampur Chini Mills (up 9.20%), Simbhaoli Sugar Mills (up 8.52%), Bajaj Hindusthan (up 7.98%), DCM Shriram Industries (up 7.86%), Shree Renuka Sugar (up 7.80%), Eastern Sugar & Industries (up 5.40%), EID Parry (India) (up 5.12%) and Upper Ganges Sugar (up 3.86%), edged higher.
The S&P BSE Sensex was down 14.33 points, or 0.08% at 18,495.37.
The government on Thursday, 4 April 2013, reportedly decontrolled the sugar sector by abolishing the monthly release mechanism and doing away with the mills' obligation to supply levy sugar for subsidised distribution under the Public Distribution System (PDS).
The decision, in line with the suggestions of a panel headed by C. Rangarajan, Chairman of the Prime Minister's Economic Advisory Council, was reportedly cleared by the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Manmohan Singh.
In October 2012, C. Rangarajan committee recommended immediate removal of two major controls - regulated release mechanism and levy sugar obligation.
Under levy-sugar obligation, private millers were required to sell a specified amount of the sweetener to the government at concessional rates.
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Under the regulated release-order mechanism, the government decided on the quantum of sugar each mill could sell in the market every quarter or every month.
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