Mumbai: Sugar stocks were in focus, rising nearly 3 percent on Thursday, on hopes the government will extend export subsidy to 1.4 million tonnes of raw sugar in the ongoing 2014-15 marketing year.
The Cabinet Committee on Economic Affairs (CCEA) is likely to take up later on Thursday a proposal in this regard.
Shares of Simbhaoli Sugars climbed 2.62 percent, Triveni Engineering & Industries was up 1.32 percent and Dhampur Sugar Mills rose by 1.07 percent on the BSE.
Sugar prices in the domestic market are currently at multi-year lows due to a supply glut. Brokers said the pricing outlook for the commodity will improve once exports start happening in a big way.
“The sugar subsidy issue is on the agenda of the meeting,” sources had said on Wednesday.
As per the proposal, the Food Ministry has favoured extending export subsidy to 1.4 million tonnes of raw sugar with some conditions. It has proposed a subsidy of about Rs 4,000 a tonne, sources had said.
Last year, the Centre had announced a subsidy for exports of raw sugar up to 4 million tonnes in order to help the cash-starved industry clear sugarcane arrears to farmers. The subsidy scheme ended in September 2014. It had reviewed the quantum of subsidy every two months.
