Sugar stocks rose in early trade today after the government approved a subsidy of Rs 3,500 crore to sugar mills for the export of 60 lakh tonnes of sweetener during the ongoing marketing year 2020-21. The move is a part of its efforts to help mills clear outstanding dues to sugarcane farmers.
Sakthi Sugars share rose 3.61 per cent, Dwarikesh Sugar Industries 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.
Information and Broadcasting Minister Prakash Javadekar on Wednesday said the Cabinet Committee on Economic Affairs (CCEA) has approved a subsidy of Rs 3,500 crore on exports of 60 lakh tonnes of sweetener and the subsidy amount will directly be given to farmers.
The minister said both "sugar industry as well as sugarcane farmers are in crisis" because of high domestic production at 310 lakh tonnes as against the annual demand of 260 lakh tonnes.
The decision will benefit 5 crore farmers, said Javadekar, who is also Union Environment Minister.
Meanwhile, in today's session, Sensex hit an all-time high of 46,778 and Nifty logged a lifetime high of 13,713. Yesterday, Sensex ended 403 points higher at 46,666 and Nifty gained 114 points to 13,682.