Decontrol decision likely on March 18; sugar stocks soar

Andhra Sugars Admin

Sugar stocks sweetened on Monday as media reports indicated that the government is going to consider sugar decontrol on March 18. The government is expected to discuss on Monday the much-awaited measure to abolish the levy-sugar mechanism, under which private millers are required to sell a specified amount of the sweetener to the government at concessional rates.

However, additional excise might have to be imposed on sugar to offset the increased subsidy burden, if the move takes place, report added. “The Cabinet could also take up the proposal to abolish the regulated release order mechanism and give mills the freedom to sell any quantity of sugar in the open market,” the newspaper report said. At present, the government decides on the quantum of sugar each mill could sell in the market every quarter or every month.

The expert panel, headed by PMEAC Chairman C Rangarajan, had recommended immediate removal of two major controls – regulated release mechanism and levy sugar obligation in October 2012. Shares of Shree Renuka, Bajaj Hindusthan and Balrampur Chini gained 2 percent each.

Sugar stocks sour after CCEA defers decision on decontrol

Andhra Sugars Admin

Sugar stocks were under pressure since early trade on Wednesday after the cabinet committee on economic affairs (CCEA) deferred a decision on sugar decontrol yesterday. No new date has been fixed yet for taking up the issue. The government was expected to discuss the much-awaited measure to abolish the levy-sugar mechanism , under which private millers are required to sell a specified amount of the sweetener to the government at concessional rates. The expert panel, headed by PMEAC Chairman C Rangarajan, had recommended immediate removal of two major controls – regulated release mechanism and levy sugar obligation in October 2012. Shree Renuka Sugars, Simbhaoli Sugar and Dharani Sugars tumbled more than 6 percent.

Sugar stocks jump as food ministry proposes 25% duty on export

Andhra Sugars Admin
Sugar stocks surged Friday on government’s impetus to boost sugar in domestic market. The Food Ministry has proposed to impose 25 percent duty on export of sugar to ensure sufficient supply of the sweetener in the domestic market, Union Minister Ram Vilas Paswan said. International prices of sugar are rising and therefore traders may increase the export of sugar to make profit, Paswan said. He added that this move will keep sufficient availability of sugar in domestic market and the price will be under control. According to trade sources, sugar exports have become viable now as global prices have increased by 50 percent in last three months due to disruption in supply from Brazil. Meanwhile, Sugarcane dues to farmers from mills, have come down to Rs 6,225 crore in the ongoing sugar season. Cane arrears had touched Rs 21,000 crore in April of the 2014-15 sugar season (October-September) as sugar prices were subdued due to surplus sugar production for last five years. “Sugarcane price arrears for sugar season 2015-16 have come down to Rs 6,225 crore. As on today, about 87 percent cane dues have been paid for the season. During the same period of last year these dues were Rs 19,437 crore,” Food Ministry said in a statement.