Shares of 10 sugar companies fell by 0.47% to 10.88% at 13:00 IST on BSE as India is likely to churn out a surplus sugar for the fifth straight year despite erratic rainfall in key growing areas.
Upper Ganges Sugar & Industries (down 10.88%), DCM Shriram Industries (down 3.46%), Oudh Sugar Mills (down 3.19%), Balrampur Chini Mills (down 3.03%), EID Parry (India) (down 2.98%), Triveni Engineering & Industries (down 2.56%), Dwarikesh Sugar Industries (down 2.19%), Eastern Sugar & Industries (down 1.69%), Rana Sugars (down 1.07%) and Bajaj Hindusthan (down 0.47%), edged lower.
The S&P BSE Sensex was up 94.33 points, or 0.36% at 26,586.84.
India is likely to produce 25 million tonnes to 25.50 million tonnes in 2014-15 year starting 1 October 2014, Indian Sugar Mills Association (ISMA) said on Wednesday, 17 September 2014.
In the current year 2013-14, it is expected that 24.3 million tonnes of sugar would be produced and domestic consumption would be a little over 24 million tonnes, ISMA said.
According to media reports, the surplus production could depress local prices and increase losses of debt-ridden sugar mills, prompting the country to maintain exports to trim rising inventory.
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