Mumbai, April 5 (IANS) Scrips of sugar mills rallied a day after the government decontrolled the Rs.80,000 crore (around $15.5 billion) sugar industry in line with the suggestions of a panel headed by C. Rangarajan, chairman of the prime minister's economic advisory council.
Stocks of companies like Shree Renuka Sugars, Bajaj Hindustan, Balrampur Chini Mills and Dhampur Sugar Mills rallied at the Bombay Stock Exchange (BSE) after the government allowed the millers to sell all of their produce in the open market.
Shares of Shree Renuka Sugars grew 4.80 percent at Rs.26.20 per share around 2.00 pm from its previous close of Rs.25. Bajaj Hindustan's scrip at BSE rose 3.52 percent at Rs.22.05 per share from its previous close of Rs.21.30.
Balrampur Chini Mills too reported healthy gains. The company's stocks gained by 5.33 percent at Rs.50.40 per share from Thursday's close of Rs.47.85.
Dhampur Sugar Mills, up 9.09 percent or 4.15 points at Rs.49.80 from its previous close of Rs.45.65. Oudh Sugar was up at 14.95 percent or 2.90 points from Thursday's close of Rs.19.40. And so was Simbholi Sugar, up 0.21 percent or 0.05 points at Rs.24.10 from Rs.24.05.
Sakthi Sugars gained 7.22 percent or 1.60 points at Rs.23.75 from Rs.22.15 and Uttam Sugar Mills went up 15.75 percent or three points at Rs.22.05 from its previous close of Rs.19.05.
The rally came after the government Thursday decontrolled the Rs.80,000 crore sugar industry in line with the suggestions of Rangarajan committee made last October that all controls on the sugar industry, one of the most regulated sectors in India, be lifted.
The cabinet committee on economic affairs (CCEA) scrapped the requirement for sugar mills to sell at least ten percent of their total produce at a subsidised rate to the financially challenged section of the society.
India is the world's second largest producer of sugar at nearly 340 million tonnes and the annual output is worth around Rs.80,000 crore (around $15.5 billion).
The livelihood of 50 million farmers depends on the industry, which employs 500,000 people directly at the mills.