NEW DELHI: Shares of sugar manufacturers jumped up to 10 per cent in Tuesday's trade after the industry body ISMA said sugar output may fall by 3 per cent to 31.5 million tonnes (mt) in the current marketing year due to untimely rains and pest attacks on cane crop.Data showed Dhampur Sugar zoomed 10 per cent to Rs 171.15.
Magadh Sugar surged 5 per cent to Rs 121.90.
Thuru Sugar climbed 4.76 per cent to Rs 30.80.
Dalmia Sugar, Rana Sugar and Balrampur Chini climbed 4.56 per cent, 4.06 per cent and 4 per cent, respectively.Other major players Shree Renuka and Bajaj Hindusthan Sugar gained up to 3 per cent in early trade.
Sugar stocks had plunged up to 67 per cent on a year-to-date basis tille October 29.There are expectations that a drop in production and steady demand may keep sugar prices stable.The Indian Sugar Mills Association (ISMA) in July had projected a production of 35 MT in the 2018-19 season that started this month, taking into account higher cane acreage and forecast of a normal monsoon.Sugar production reached at an all-time high of 32.5 million tonnes in the 2017-18 marketing year (October-September).In its forecast issued Monday, the ISMA reduced the sugar production estimate for the 2018-19 marketing year as the sugarcane crop in the three main growing states of Uttar Pradesh, Maharashtra and Karnataka, which contribute around 80 per cent to the total sugar output, have been impacted adversely, according to PTI."Sugar production in 2018-19 would be around 32 MT.
However, this figure may be lower if we consider the expected diversion of sugar to ethanolThe sugar production estimates for 2018-19, after considering this diversion into ethanol, will be around 31.5 MT tonnes," the statement said.