Sugar stocks turn sweet

Sugar stocks are all up in the green and two stocks figure amongst the top five gainers on BSE. Renuka Sugar is up almost 12% at Rs.12 and Balrampur Chini is up 4% at Rs.81.55. Bajaj Hindustan and Dhampur Sugar, all are up over 3%.

The reason for sugar stocks suddenly getting sweet on the bourses is on account of global sugar prices jumping up. Heavy rains and drought, right from Thailand to Central America has tightened sugar supplies and this has already pushed up prices. In India itself, sugar prices are expected to go up by Rs.3-5 in the next fortnight. International Sugar Organisation said that the deficit between demand and supply in the market had widened to 5.02 million tonnes from 305 million tonnes in September.

Sugar companies are hopeful that with global shortages,  the Govt in the upcoming Budget will get export sops to boost sugar exports. With international sugar prices jumping up, there is expectation that export parity prices will soon go up too.