Sugar shares jump after Cabinet approves Rs 6000 crore interest-free loan

Written by | June 10, 2015 | 0

NEW DELHI: Shares of sugar company surged today after Cabinet approved Rs 6,000 crore interest-free loan to sugar mills struggling to pay cane dues to farmers because of weak demand.

Stocks of companies such as Bajaj Hindusthan Sugar Ltd, Sree Renuka Sugars Ltd, Dhampur Sugar Mills Ltd, Andhra Sugars Ltd, Mawana Sugar and Balrampur Chini Mills Ltd rose in the range of 6 to 13 percent.

India, the world’s second-biggest sugar producer, exported more than 1 million tonnes of raw sugar in 2014.

However, the country is likely to produce 26 million tonnes of sugar in the current season, up to 4 percent above an earlier estimate. Local demand is pegged around 24.7 million tonnes.

Filed in: National

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