Sugar stocks rallied on Monday over expectation of reduction in sugar sale quota for mills to 2.05 million tonnes in July, lower than 2.15 million tonnes set for June.
In intraday trading, share price of Balrampur Chini Mills rose 4 percent, EID Parry increased by over 3 percent while Dhampur Sugar’s stock price surged over 4 percent. Rajshree Sugars rose the highest at 10 percent.
According to Indian Sugar Mills Association (ISMA), the sugar output is estimated to hit 33 million tonnes in 2018-19 (October-September) from its estimate of 30.7 million tonnes in January.
In a bid to make profits in the sugar industry, four trade houses -- Sucden, ALvean, ED&F Man and Louis Dreyfus -- scooped up delivery of July raw sugar against ICE Futures US contract that expired on Friday in the largest delivery on record.
Another positive sentiment in the sugar market today is the 5 percent import duty cut on raw sugar from Indonesia.
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First Published: IST