Shares of sugar manufacturers are in limelight in morning trades on reports that the Food Ministry is considering a proposal to reduce the quantity of non-levy sugar for the September quarter and concerns over the output due to the dry weather in key growing areas.
Non-levy, or free sale sugar, is sold by millers in the open market, but the quantity each mill can sell is fixed by the government. At present, sugar mills are required to provide 10% of their total production as levy sugar, which is meant for public distribution system, at subsidised rates.
“Rainfall in the cane growing central region of Maharashtra has been 51% below average since the beginning of the monsoon,” a Reuters report suggests. Meanwhile, a sluggish start to Brazilian cane harvest due to poor weather has also triggered the rally in sugar stocks.
Among the individual stocks, Shree Renuka Sugars, Balarampur Chini Mills, Dhampur Sugars, Upper Ganges Sugars and EID Parry are trading higher by 2-3% on the Bombay Stock Exchange.
