Sugar stocks rose on Wednesday after a CNBC media report indicated that cabinet may consider new ethanol blending proposal on Thursday, and may talk about soft loans upto an extent of Rs15,000 crore to sugar mills together with a subsidy of Rs3355 crore on loans to mills.
Sugar mills are enjoying huge boost from the govt. Of late, on February, the govt increased the MSP by Rs2 per kilo to Rs31. The benefit that is getting to the millers will help them their liquidity cash-crunch to clear their rising cane arrears of around Rs 20,000-crore.
In reaction, the rising sugar stocks on Wednesday first afternoon hours of trade, include Sakthi Sugars up 9.70%, Mawana Sugar up 6.50%, Triveni Engineering up 5.40%, Dalmia Bharat Sugar up 3.34%, Rajshree Sugars, up 2.59 Dwarikesh Sugar up 3.50% among others. Meantime, Sensex and Nifty advance by 164 and 67 points respectively, at 2.45pm today.