Sugar stock prices increased as government give export permits

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Sugar stock prices increase
As the news came that sugar companies were given export permits for an additional 4.21 lakh of sugar to be exported.

Sugar production for the mnarketing year of 2010-11 has exceeded the domestic demand after a gap of two years. This has put pressure on sugar companies finance as minimum support price has been raised by the government for the farmers, hence increasing the cost of sugar production.

At the same time, the bumper harpest in the country has affected the sugar price. And the control over export by the government had affected the margin levels of the company.

India produced 24.3mn tonnes of sugar in the 2010-11 marketing year against 18.9 mt in the previous year. In the 2008-09 marketing year, the production stood at 14.6 mt.

According to media reports, sugar companies permitted as the sugar production of the country in the 2010-11 marketing year (October-September) has exceeded domestic demand after a gap of two years. Till October 4, export release orders for 4,21,808 tonnes have been issued to nearly 450 factories.

Read more about: sugar, industry, sector, bse, nse
Story first published: Friday, October 7, 2011, 15:47 [IST]
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