Sugar firms' stocks mixed bag after consumer ministry warns them to furnish released sugar details
While shares of Shree Renuka and Dalmia Sugar were trading higher, the stock of Balrampur Chini was flat, while stocks of Eid Perry and Triveni Engg were down on BSE.
Sugar Stocks: Two days after the consumer affairs ministry pulled up sugar companies for not furnishing information related to their sugar stock, prominent sugar firms in India are trading mixed bags on Wednesday morning.
While shares of Shree Renuka and Dalmia Sugar were trading higher, the Balrampur Chini stock was flat, while stocks of Eid Perry and Triveni Engg were down on BSE.
Why ministry warned sugar firms
In a letter dated September 18, the consumer ministry reiterated its stand in a letter to the CEOs and MDs of all sugar mills that the companies were required to furnish the complete data of sugar sold and produced within 3 months.
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Other than that, the ministry also asked stockists, wholesalers, and big chains to provide stock updates on the released sugar.
The ministry's letter was a response to its earlier correspondence regarding the same to the companies on September 8.
The ministry said that despite it directing sugar firms, many companies were yet to provide information.
Issuing a warning to sugar companies, the ministry said that if they failed to furnish details, the ministry would take strict action against them.
Sugar stocks were in high demand on the counters of bourses last week after brokerage firm DAM Capital Advisors Ltd took a bullish stance on sugar companies amid the backdrop of rising sugar prices.
With the warning from the ministry in place, here's the performance of sugar stocks on Wednesday.
Shares of India's biggest sugar company by market cap were trading 0.68 per cent higher, or Rs 0.37 per cent, at Rs 54.42 in early trading on Wednesday.
Shares of E.I.D. Perry also had a weak opening on Wednesday, sliding 2.38 per cent down, or Rs 13.30, at Rs 544.40 each.
The sugar company's stock was trading flat in early morning deals on Wednesday, at Rs 439.05. Its share hit a 52-week high of Rs 449.60 last week.
The stock started trading on Wednesday on a poor note as it fell 1.86 per cent, or Rs 7.20, at Rs 380.65.
Today's performance came after the stock hits 52-week highs on its two previous sessions on Monday and Friday, respectively.
The stock of Dalmia Sugar started its day on a high note as it rose 1.11 per cent, or Rs 5, at Rs 456.15, in morning hours on Wednesday. The stock hit its 52-week high on September 14.