Shares of sugar manufacturer have rallied up to 6% on the bourses after the Cabinet Committee on Economic Affairs (CCEA) decided to give mills a subsidy of Rs 3,333 a tonne on the export of raw sugar for February and March. The move will boost overseas sales and help the cash-starved industry to pay arrears to sugarcane farmers.
Balarmpur Chini Mills, Shree Renuka Sugars, Bajaj Hindustan, Dhampur Sugar Mills, Oudh Sugar Mills and Simbhaoli Sugars are up 2-6% on the Bombay Stock Exchange.
The export subsidy is part of a package to bail out the sugar sector, which has been facing losses due to mounting cane arrears and falling prices.
Sugar companies had reported an aggregate net loss of over Rs 1,000 crore for the quarter ended September 2013.
The Indian Sugar Mills Association (ISMA) welcomed the decision, saying it would help improve their liquidity and clear part of the arrears to sugarcane growers, the PTI report suggests.
Balarmpur Chini Mills, Shree Renuka Sugars, Bajaj Hindustan, Dhampur Sugar Mills, Oudh Sugar Mills and Simbhaoli Sugars are up 2-6% on the Bombay Stock Exchange.
The export subsidy is part of a package to bail out the sugar sector, which has been facing losses due to mounting cane arrears and falling prices.
Sugar companies had reported an aggregate net loss of over Rs 1,000 crore for the quarter ended September 2013.
The Indian Sugar Mills Association (ISMA) welcomed the decision, saying it would help improve their liquidity and clear part of the arrears to sugarcane growers, the PTI report suggests.
