Stocks of sugar companies rallied on reports of a formal submission of C Rangarajan’s report on a decontrol road map for the industry. Rangarajan, chairman of the PM’s Economic Advisory Council, is expected to give the report early morning tomorrow to the government.
At the Bombay Stock Exchange, share price of Bajaj Hindusthan closed at Rs 32.4, up 3.9 per cent from the previous close. Renuka Sugar gained 4.6 per cent to close at Rs 36.8, Triveni Engineering gained 5.4 per cent to close at Rs 23.7, Sakthi Sugars gained 5.3 per cent to close at Rs 32.95.
The Rangarajan Committee, set up earlier this year by the Prime Minister’s Office (PMO), is learnt to have favoured a total decontrol of the industry, doing away with the levy sugar obligation, release mechanism and freeing of export-import.
While recommending the Centre’s Fair and Remunerative Price (FRP) as the base price for sugarcane, the panel has suggested a profit-sharing mechanism so that farmers, too, benefit from higher sugar prices. The committee has also recommended doing away with the state’s power to reserve sugarcane area for mills.
