Sugar stocks rise on export permit

Led by Bajaj Hindustan, stocks of sugarcompanies surged in early trade on the BSE on Friday after the governmentissued permits for the export of 4.21 lakh tonnes of the sweetener, out of thetotal 5 lakh tonnes that it allowed in August.

Sugar stocks rallied in today's trade, led by the country'sbiggest producer Bajaj Hindustan, which jumped nearly 2.67 per cent to a highof Rs 38.40 on the BSE.

Sugar industry coping with a surplus

Similarly, Simbhaoli Sugars jumped by 6.70 per cent on theBSE.

Exports of the sweetener were permitted as the country'ssugar production in the 2010-11 marketing year (October-September) has exceededdomestic demand after a gap of two years.

'Not against lifting levy, but can't act in haste'

Till October 4, export release orders for 4,21,808 tonneshave been issued to nearly 450 factories, according to data posted on the FoodMinistry's website.

Reacting to the development, Balrampur Chini Mills surged byas much as 3.92 per cent, while Dhampur Sugar Mills jumped 6.78 per cent.

The other sugar companies that participated in the rallyincluded Dwarikesh Sugar (up 3.38 per cent), EID Parry (up 2.17 per cent),Shree Renuka (up 6.52 per cent), Oudh Sugar (up 7.65 per cent) and Uttam Sugar(up 3.40 per cent).

The rally in sugar stocks was in sync with the trend in thebroader market, with the BSE trading in positive terrain.

The Sensex was trading 467.69 points higher at 16,260.10 at1110 hours today.

India,the world's second largest producer of sugar after Brazil and the biggest consumer,produced 24.3 million tonnes of sugar in the 2010-11 marketing year, as against18.9 million tonnes in the previous year. In the 2008-09 marketing year, sugarproduction stood at 14.6 million tonnes.