Sugar stocks jump on hopes of Rs 6,000 cr interest-free loan

Sugar stocks came into limelight on Wednesday on news that the food ministry has proposed to give Rs 6,000 crore interest-free loan to sugar industry.

Cheering the news, share price of sugar majors surged up to 12 per cent in early trade.

At 11 am, shares of Sakthi Sugars were up 11 per cent at Rs 15. Shree Renuka Sugars scrip was up 10.57 per cent at Rs 11.19, Bajaj Hindusthan gained 9.22 per cent to Rs 14.45, Dhampur Sugar Mills was up 10 per cent to Rs 33, Bannari Amman up 9.12 per cent to Rs 69.75 and Balrampur Chini Mills was up 6.96 per cent to Rs 43.80.

At the end of March 2014, Shree Renuka Sugars, Bajaj Hindusthan Sugar and EID Parry had a total debt of Rs 5,436.58 crore, Rs 2,732.07 crore and Rs 1582.47 crore, respectively.

Share price of Sakthi Sugars, Shree Renuka Sugars, Bajaj Hindusthan, Dhampur Sugar Mills, Bannari Amman and Balrampur Chini Mills closed at Rs 15.22, Rs 10.89, Rs 14.56, Rs 31.32, Rs 821.50 and Rs 42.05, respectively.