Mumbai: Sugar stocks on Friday gained up to 3.2 percent after the government approved subsidy on export of up to 1.4 million tonnes of raw sugar in the ongoing 2014-15 marketing year.
Shares of Mawana Sugars climbed 3.16 percent, Dwarikesh Sugar Industries rose by 2.88 percent and Sakthi Sugars gained 2.74 percent on the BSE.
Similarly, Shree Renuka Sugars went up by 1.53 percent and Triveni Engineering & Industries rose by 0.22 percent.
The government had yesterday approved subsidy on export of up to 1.4 million tonnes of raw sugar in the ongoing 2014-15 marketing year, a move that would boost millers' cash-flow and enable them to clear mounting sugarcane price arrears that have crossed Rs 12,000 crore.
"The CCEA has approved the continuation of the incentive scheme for marketing and promotion services of raw sugar production during 2014-15 (October-September) for a quantity of 1.4 million tonnes," an official statement had said.
The CCEA further approved an uniform rate of export subsidy at Rs 4,000 per tonne for the 2014-15 marketing year.
Last year, the Centre had announced a subsidy for exports of raw sugar up to 4 million tonnes in order to help the cash-starved industry clear sugarcane arrears to farmers.
The subsidy scheme ended in September 2014 as the new government did not extend for the current marketing year.
