Indian sugar stocks rise on reports govt plans bailout for mills

Avadh Sugar & Energy

05/06/2018 05:37

June 5 (Reuters) - Shares of Indian sugar companies rose on
Tuesday following reports that the federal government would
announce a bailout package of over 70 billion rupees ($1.04
billion) for cash-starved sugar mills to help clear dues to
farmers.  urn:newsml:reuters.com:*:nL3N1T64QS 
    Dhampur Sugar Mills Ltd  DAMS.NS  and Mawana Sugars Ltd
 MAWS.NS  gained 7 percent each, while Balrampur Chini Mills Ltd
 BACH.NS  and Avadh Sugar & Energy Ltd  AVAD.NS  climbed more
than 6 percent each.
    Uttam Sugar Mills Ltd  UTSM.NS , Magadh Sugar & Energy Ltd
 MGAD.NS  and Dalmia Bharat Sugar and Industries Ltd  DLMI.NS 
rose 4 percent each.
    The Cabinet Committee on Economic Affairs is scheduled to
meet on Tuesday to decide on the bailout, according to the
report. 
    Reuters reported late last month, citing official sources,
that the government would soon approve a plan to create "buffer
stocks" of 3 million tonnes of sugar to prune surplus in the
domestic market and stem a free fall in prices.  urn:newsml:reuters.com:*:nL3N1ST3VU
    
($1 = 67.1225 Indian rupees)

 (Reporting by Jessica Kuruthukulangara in Bengaluru; Editing by
Subhranshu Sahu)
 ((Jessica.Kuruthukulangara@thomsonreuters.com;
+91-80-6749-7142; Reuters Messaging:
Jessica.Kuruthukulangara.reuters.com@reuters.net))