Dwarikesh Sugar rose 4.04 per cent, Simbhaoli Sugars was up 5 per cent, Balrampur Chini Mills gained 4.43 per cent, Bajaj Hindusthan Sugar rose 5.18 per cent and Dalmia Bharat Sugar and Industries gained 4.14% per cent in early trade
While the Bajaj Hindusthan stock lost 8.82%, Simbhaoli Sugars fell 9.77% on the BSE. Avadh
Sugar and Energy (3.03%), Balrampur Chini Mills (4.45%), Mawana Sugars
(6.33%), Dalmia Bharat Sugar & Industries (8.99%) and Andhra Sugars
(5.28%) were the other losers on BSE.
A delayed cane crushing season in Uttar Pradesh is hurting both the industry and farmers in the country's second-biggest sugar producing state. Successive state governments have largely ignored the economic rationale and steadily raised prices year after year.
The biggest problem for the sugar industry is the strict state control on every aspect of the business, right from the purchase price of sugarcane to how much each mill can sell in the open market. But analysts say that moves to decontrol the industry will improve the performances of sugar companies.