In Friday's intra-day trade, sugar stocks including Dhampur Sugar, Balrampur Chini Mills, Dwarikesh Sugar Industries, Mawana Sugars, E.I.D-Parry (India) Ltd, Ugar Sugar Works etc. recorded gains of up to 7% after government announced that India plans to export 2 million tonnes of raw sugar to China after a decade as early as next year.
The statement by the commerce ministry released on Thursday said, "Export of raw sugar from India to China will begin early next year. A contract for exporting 15,000 tonnes of raw sugar has been entered to by the Indian Sugar Mills Association (ISMA) and COFCO, a Government of China run public sector company". Further the issued statement underlined India's plan to export 2 million tonnes of sugar to China to reduce trade deficit with the neighboring nation. "It is a move to reduce the $60 billion trade deficit that China has with India," the statement said.
Raw sugar will be the second product after non-basmati rice that China will import from the Indian sub-continent.
At the start of the marketing year in October, India has an opening stock of 10 million tonnes. Domestic sugar manufacturing companies have been asked by the Indian government to compulsorily export 5 million tonnes in order to liquidate excess sugar stock. Also, the government has come up with financial aid to enable outward shipments. Meanwhile it is negotiating with some of the nations including China and Indonesia to boost sugar exports.
EID Parry (India) Ltd recorded a day's high of Rs. 239, surging as much as 7%, while Sakthi Sugars surged close to 5% to reach an intra-day high of Rs. 14.47. Dwarikesh Sugar, Balrampur Chini Mills, Mawana Sugars and Dhampur Sugar Mills also gained in trade today by 4.30%, 5.26%, 4.09% and 5.83%, respectively.