Sugar stocks sour after CCEA defers decision on decontrol

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.

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