Sugar stocks see sweet gains on CCEA's nod to export subsidy

Sugar stocks today gained up to 3.2 per cent after the government approved subsidy on export of up to 1.4 million tonnes of raw sugar in the ongoing 2014-15 marketing year.
Shares of Mawana Sugars climbed 3.16 per cent, Dwarikesh Sugar Industries rose by 2.88 per cent and Sakthi Sugars gained 2.74 per cent on the BSE.
Similarly, Shree Renuka Sugars went up by 1.53 per cent and Triveni Engineering & Industries rose by 0.22 per cent.
The government had yesterday approved subsidy on export of up to 1.4 million tonnes of raw sugar in the ongoing 2014-15 marketing year, a move that would boost millers' cash-flow and enable them to clear mounting sugarcane price arrears that have crossed Rs 12,000 crore.

"The CCEA has approved the continuation of the incentive scheme for marketing and promotion services of raw sugar production during 2014-15 (October-September) for a quantity of 1.4 million tonnes," an official statement had said.
The CCEA further approved an uniform rate of export subsidy at Rs 4,000 per tonne for the 2014-15 marketing year.
Last year, the Centre had announced a subsidy for exports of raw sugar up to 4 million tonnes in order to help the cash-starved industry clear sugarcane arrears to farmers. The subsidy scheme ended in September 2014 as the new government did not extend for the current marketing year.