Sugar stocks today surged up to 9 per cent after the government ratified the methodology used for fixing the export subsidy on raw sugar during April-September period of the 2013-14 marketing year.
Shares of Dwarikesh Sugar Industries zoomed 9.03 per cent, while Oudh Sugar Mills soared 8.26 per cent on the BSE.
Among others, Bajaj Hindusthan surged 5.14 per cent, Shree Renuka Sugars climbed 4.53 per cent, Balrampur Chini Mills (3.46 per cent), Triveni Engineering & Industries (3.28 per cent) and Dhampur Sugar Mills (3.12 per cent).
In February this year, the Centre had announced subsidy for exports of raw sugar up to 40 lakh tonnes during 2013-14 and 2014-15 marketing years (October-September) to help the cash-starved industry to clear cane arrears to farmers.
However, the scheme was not extended after September 2014.
The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has given approval to "ratify the methodology adopted to recalculate the incentive rate for bi-monthly periods of April-May 2014, June-July 2014 and August-September, 2014", an official statement had said yesterday.
Meanwhile, India's sugar production rose by 47 per cent to 42.25 lakh tonnes till December 15 of this marketing year, which started in October this year, leading to a fall in ex-factory prices of the sweetener.
