Sugar companies are under pressure on the bourses, with most frontline stocks from the sector trading at 52-week lows.
Shree Renuka Sugars, Bajaj Hindustan, Balrampur Chini Mills, Dharani Sugars & Chemicals, Dwarikesh Sugar Industries and Sakthi Sugars are down 1-2% each and trading at one-year lows on the National Stock Exchange.
According to media reports, sugar mills in Uttar Pradesh, the second largest producing state, have accrued an overall loss of Rs 220 crore due to a widening difference between cost of production and prevailing ex-factory selling price.
Meanwhile, the prices of fine-variety S-grade sugar fell for the sixth straight day by Rs 20 a quintal on the Vashi-Mumbai spot market on Thursday. The M-grade sugar shaved off Rs 15-20 a quintal and naka prices dropped by Rs 10-15 a quintal.
Sugar futures too declined on sufficient availability of the crop in domestic markets caused by increased quota for December 2011.
