Sugar stocks drop on price concerns

Shree Renuka Sugar closed lower by 2.07 per cent at Rs 231.40,while Oudh Sugar Mills was down 3.56 per cent at Rs 77.15.

Sugar prices have become a cause of concern for the government with retail prices nearing Rs 50 a kg. The price of the sweetener rose 53.98 per cent in December year-on-year.

To increase the availability of sugar,the government on Wednesday relaxed the norms for processing of raw sugar and allowed duty-free import of white sugar till December-end.

Analysts said after witnessing an uptrend for an year,investors in sugar stocks are now booking profit as sugar has now become a politically sensitive issue.

“Sugar stocks are now seeing sideways consolidation. Amid the uncertainty over price rise,investors are taking profit off the table. The long term trend is,however,on the higher side,” SMC Global Vice President Rajesh Jain said.

Other major losers in the sugar sector include Balrampur Chini Mills (0.59 per cent),Bajaj Hindusthan (0.62 per cent) and Triveni Engineering (0.88 per cent).