DJ MARKET TALK: India Sugar Plays Up; Panel To Examine Sector Decontrol
Published: 01/27/2012, 10:00:02 AM
DJ MARKET TALK: India Sugar Plays Up; Panel To Examine Sector Decontrol 0956 GMT [Dow Jones] India's sugar stocks are sharply higher after a statement that Prime Minister Manmohan Singh has set up a panel to examine issues relating to lifting government control over the sector, an analyst says. Sugar is the only agricultural commodity in India whose distribution is still state-controlled. The government fixes cane purchase prices from farmers and the monthly sales for mills to local markets. Companies also sell 10% of total mill output to the government for welfare programs around 35% discount over open market rates. The domestic industry had complained over profits being hurt. "The rally is preemptive and speculative. The panel says it will submit its recommendations 'as early as possible'; in the absence of a specific deadline and with no clarity on the fine print of the proposal, sugar plays will likely correct in the next few weeks," the analyst says. Shree Renuka Sugars (532670.BY) is up 6.7% at INR39.25, Balrampur Chini Mills (500038.BY) is 6.2% higher at INR47.50 and Bajaj Hindusthan (500032.BY) is up 4.6% at INR34.95. (khushita.vasant@dowjones.com) Contact us in Singapore. 65 64154 140; MarketTalk@dowjones.com (END) Dow Jones Newswires January 27, 2012 04:56 ET (09:56 GMT) Copyright (c) 2012 Dow Jones & Company, Inc. 012712 09:56 -- GMT ------ Service:ODJ/CA CB CS ID:DJC00ujY20127 Page:5064 FSN:0 Comments General Stocks Sugar 5064 55106 I/FOD I/OFP I/XDJGI M/NCY M/NND N/AER N/ALMT N/ASMT N/CMD N/CNW N/DJA E N/DJCS N/DJG N/DJGS N/DJI N/DJIR N/DJMT N/DJOS N/DJQB N/DJWI N/DN N/INMT N/OSA G N/OSCM N/OSTR N/SCD N/SGR N/STK N/WED N/WEI N/WER P/AEQ P/BFX P/DJCS R/ASI R/F E R/FEO R/FXAS R/II 2012-01-27 09:56:27 UTC ^^^^^^