sugar shares surge after government removes curbs - Business Today

Home /MARKETS /Stock Watch /Story BT Online Bureau    New Delhi   Last Updated: April 5, 2013  | 10:06 IST Shares of India's sugar producers were up sharply on Friday after the government partially decontrolled the Rs 80,000-crore sugar sector by giving freedom to millers to sell in the open market. The move removed their obligation to supply the sweetener at subsidised rates to ration shops. The decision will lead to government's annual sugar subsidy doubling to Rs 5,300 crore, while industry will save about Rs 3,000 crore per year. Mills at present have to sell a portion of the sweetener they produced at a fixed rate of about Rs 20 per kg to the government. After the decision, they are free to sell all of their produce in the open market. Shares of Shree Renuka shares jumped 5.5 per cent to Rs26.35 while Bajaj Hindusthan Ltd (BJHN.NS) was up nearly 8 per cent and Balrampur Chini Mills rose over 7.2 per cent. The broader markets were flat with a negative bias with Sensex down at 18487.08, off 22.62 points at 10 am. Should you opt for e-gold or gold ETFs? Sensex falls 292 pts, at four-month low Adani Power shares jump on tariff hike ruling RBI to unveil monetary policy on May 3 Govt removes controls on sugar producers Cabinet clears decontrol of sugar sector via Business - Google News http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNFEObmTJ_IoqnfNrCPzr6p3P36sew&url=http://businesstoday.intoday.in/story/sugar-shares-surge-after-government-removes-curbs/1/193853.html

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