The Union government is expected to discuss sugar decontrol at a meeting in the next 8-10 days, the newspaper report suggests, quoting agriculture minister Sharad Pawar.With decontrol, the government will give up its control over the sector and sugar prices will be determined by the market forces.
Meanwhile, the government has issued a formal order for export of an additional 500,000 tonnes of sugar after receiving an approval by a panel of ministers. The Empowered Group of Ministers (EGoM) on food had also lowered the monthly quota of domestic sales for July to 17.72 lakh tonnes from 18.67 lakh tonne in the previous month.
Shree Renuka sugars rallied more than 6% in today's trade. Other sugar companies also rallied on the buzz and most of them clocked a gain of over 4% today.
The sugar counters are expected to remain active for a week or two and hence traders can play the sector with positive bias for 5-10 % gains in select stocks. One should try to concentrate on sugar counters which are present in FnO because those will be the stocks where trading positions will be built in next few days.
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