DJ MARKET TALK:India Sugar Stocks Likely Down; Cane-Pricing Issue
Published: 11/20/2009, 4:25:02 AM
DJ MARKET TALK:India Sugar Stocks Likely Down; Cane-Pricing Issue 0423 GMT [Dow Jones] India sugar stocks likely to extend Thursday's losses on fears that mills may have to pay more to farmers for cane, says local dealer; India's prime minister Manmohan Singh indicated that country may amend sugarcane ordinance--which makes individual states pay difference between state-advised price for crop and administered price set by central government, Economic Times reported Friday. Note, speaker of India's lower house of Parliament Thursday adjourned proceedings as opposition lawmakers left their seats and demanded higher prices for farmers. Parliament was to consider amendment to raise state-set price of cane to INR130/100 kilograms from about INR108/100 kgs, but thousands of farmers from Uttar Pradesh (India's second-biggest sugar producing state) protested outside Parliament, deeming this rise as insufficient and demanding that mills double last season's price of INR140/100 kgs. Sugar mills in the state agreed to pay farmers INR180-INR185/100 kg, which some--but not all farmers--have accepted. Shree Renuka Sugars (532670.BY) closed down 4.7% at INR226.60, Bajaj Hindusthan (500032.BY) down 7.3% at INR207.50 and Balrampur Chini Mills (500038.BY) down 3.7% at INR138.45. Dealer tips downside of 2%-5% in Friday's session. (SHB) Contact us in Singapore. 65 64154 140; MarketTalk@dowjones.com (END) Dow Jones Newswires 11-19-09 2323ET Copyright (c) 2009 Dow Jones & Company, Inc. DJ info: 5064,55106,62504 N/DJCS,N/DJOS,N/OSAG,N/OSCM,N/OSTR,N/AGC,N/ALMT,N/ASMT,N/CMD,N/CNW,N/DJMT,N/DJW ,N/INMT,N/SCD,N/SGR,N/STK,N/WEI FSN36583 ACTV FINANCIAL FOOD GENERAL STOCKS SUGAR 2009-11-20 04:23:02 UTC ^^^^^^