New Delhi: Sugar stocks were trading lower on Friday after the government decided to cut sugar export subsidy for the current season that ends on September 30.
The Ministry Of Consumer Affairs, Food and Public Distribution stated that the subsidy on sugar exports is now reduced to Rs 4000 per tonne from Rs 6000 per tonne. The subsidy was approved to encourage sugar exports to achieve a target of 6 million tonnes and assist cash strapped mills to clear the cane dues.
The shares of Bajaj Hindusthan Sugar fell 4.8% to Rs 10.90; Balrampur Chini was trading 3.03% lower to Rs 304.00. The share of Shree Renuka Sugars fell 2.01% to Rs 14.60.
Among the affected stock was Simbhaoli Sugars which hit the 5 per cent lower circuit limit at Rs 14.79. Similar was the case with Dharani Sugars, which hit its circuit limit at Rs 11.55. Sakthi Sugars fell 5 per cent to Rs 12.35.
Subodh Kumar, Joint Secretary, Food Ministry said, “We have reduced the subsidy on sugar exports by Rs 2,000 per tonne to Rs 4,000 per tonne with immediate effect keeping in view the global sugar prices.”