It's sweet story for sugar shares even as the broad market is under pressure trailing overseas equities.
The sweetener has come in the form of reports that the Uttar Pradesh Chief Minister Mayawati has requested the prime minister to grant Rs 2,000 crore interest-free loan to sugar companies in the state.
The companies are falling short of around Rs 1,500 crore to re-pay farmers for cane purchase. The mills had purchased cane worth Rs 11,000 crore in 2006-07 (Oct-Sep) and have so far managed to repay Rs 9,500 crore, the report says.
In another positive development, a group of ministers has cleared a proposal to extend the loan-repayment period of sugar co-operative factories from two years to five.
The government has also set up a committee under the chairmanship of Vijay Kelkar, former advisor to the finance minister, to examine in detail problems faced by the sugar industry.
Triveni Engineering soared 7 per cent, Renuka Sugar spurted 4.66 per cent, Balrampur Chini was up 4.88 per cent, Bajaj Hindusthan climbed 3.64 per cent and EID Parry was up 1.6 per cent.
The key indices, however, were in the red. The Sensex was down 50 points at 14868 and Nifty weak by 8 points at 4312.
The sweetener has come in the form of reports that the Uttar Pradesh Chief Minister Mayawati has requested the prime minister to grant Rs 2,000 crore interest-free loan to sugar companies in the state.
The companies are falling short of around Rs 1,500 crore to re-pay farmers for cane purchase. The mills had purchased cane worth Rs 11,000 crore in 2006-07 (Oct-Sep) and have so far managed to repay Rs 9,500 crore, the report says.
In another positive development, a group of ministers has cleared a proposal to extend the loan-repayment period of sugar co-operative factories from two years to five.
The government has also set up a committee under the chairmanship of Vijay Kelkar, former advisor to the finance minister, to examine in detail problems faced by the sugar industry.
Triveni Engineering soared 7 per cent, Renuka Sugar spurted 4.66 per cent, Balrampur Chini was up 4.88 per cent, Bajaj Hindusthan climbed 3.64 per cent and EID Parry was up 1.6 per cent.
The key indices, however, were in the red. The Sensex was down 50 points at 14868 and Nifty weak by 8 points at 4312.
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