Sugar stocks in intra-day trade on Tuesday climbed higher amid reports that the government of India has taken a decision on keeping sugar export subsidies, undeterred by rivals' complaints to the WTO. "The industry needs government support for exports. It will be provided without violating the WTO framework," a senior government official with involvement in the policy making told Reuters.
The export subsidies enable an increase in shipment of sugar and thus help in reducing its rising inventories in the country, which commands its position as the second biggest producer of sugar globally.
Further in accordance with the report, sugar exports from the country surged from 620,000 tonnes a year earlier to 3.3 million tonnes, which made rivals to complaint at the WTO who alleged that the incentives violate trade practices.
On Thursday, Brazil said it has asked WTO to set up a panel for resolving its rift over sugar subsidies provided by the Indian government. Meanwhile, complaints have also been registered by Guatemala and Australia.
Sugar stocks including the likes of Uttam Sugar Mills was up 10.31% and made an intra-day high of Rs. 134.25, Balrampur Chini Mills rose 2%, reaching an intra-day high of Rs. 161.80, Triveni Engineeing on the other hand was trading higher by close to 4% and Mawana Sugars trade was up 3%.