Sugar stocks rise on Rangarajan''s panel report on decontrol

Mumbai, Oct 12 (PTI) Shares of sugar companies today soared as much as 5 per cent after the the Rangarajan Committee suggested de-control of the industry by giving freedom to mills to sell their produce in open market.

Cheering the move, shares of Simbhaoli Sugars surged 4.8 per cent, while Balrampur Chini Mills rose by 2.04 per cent, Dhampur Sugar Mills up 3.25 per cent, DCM Shriram Industries (0.89 per cent) and Rana Sugars (1.5 per cent).

"This is a step in the right direction which can make sugar de-control. This will increase the margins of sugar companies which is positive for the sector," CNI Research CMD Kishor Ostwal said.

The Rangarajan Committee today suggested de-control of the sugar sector by giving freedom to mills to sell their produce in open market and removing the obligation on the industry to supply the sweetener at below market price for ration shops.

Releasing the report, Rangarajan said: "There is a whole gamut of regulations related to the sugar sector. We have looked at all of them and have made key recommendations.

"Levy sugar obligation and administrative control on non- levy sugar need to be dispensed immediately."
He added that this will free the industry from burden of the government''s welfare programme.

In the broader market, the BSE benchmark Sensex ended at 18,675.18, down 129.57 points.