Sugar companies shares up on spike in global prices

Reuters Market Eye - Shares in sugar manufacturers gain after raw sugar futures on ICE soared to three-month highs on Monday on worries about potential crop damage from dry weather in Brazil.

Rising global sugar prices would help local mills increase exports, helping offset the impact of falling production, traders say.

Indian sugar mills produced 14.37 million tonnes of the sweetener between October 1 and February 15, over 13 percent lower than a year earlier, according to industry body, Indian Sugar Mills Association.

Mills have sold only about 700,000 tonnes of raw sugar for export so far in the 2013/14 season, despite industry expectations of 4 million tonnes.

 

Shares in Balrampur Chini Mills , which gained as much as 5.7 percent, was trading 2.76 percent higher at 0810 GMT, while Bajaj Hindusthan was up 1.16 percent.

(Reporting by Indulal PM)