Sugar Sector Up: Upper Ganges Sugar, Oudh Sugar Outperform

Outperforming Stocks in the Sugar Sector:

Upper Ganges Sugar and Oudh Sugar stocks were seen rising in the morning trade on the back of good performance by the sugar sector. Upper Ganges Sugar share pricewas trading 11 per cent higher and Oudh Sugar share price was seen 6 per cent up. Dynamic Levels Research analysts recognize Upper Ganges Sugar as a top 500 share while Oudh Sugar falls in the multibagger stocks list. Good buying was recorded in the sugar sector in the morning trade.

Rise in Sugar Production:

India’s sugar production has risen marginally by nearly 2 per cent to reach 7.87 lac tonnes as compared to last year, mainly on the back of early crushing in states such as Uttar Pradesh and Karnataka.

Indian Sugar Mills Association (ISMA) stated that sugar mills have produced a total of 15,000 tonnes more till 15th November this year at 7.87 lac tonnes as compared to 7.72 lac tonnes in the same period last year. Sugar marketing year runs from the month of October to September. This is majorly because sugar mills in Uttar Pradesh and Karnataka have begun earlier than their usual time, ISMA added.

In Uttar Pradesh:

As on 15th November, 222 mills have begun crushing as compared to 175 mills in 2015-16 SS or sugar season same time last year. Sugar mills in Uttar Pradesh have advanced beginning of their crushing operations this season by a fortnight as compared to 2015-16. As on 15th November, 55 sugar mills have been working and have produced 1.93 lac tonnes, as compared to 15,000 tonnes in the same period last year, when merely 6 mills were operational.

In Maharashtra:

In Maharashtra, sugar mills commenced operations after 5th November, while in 2015-16, the mills began their crushing on 15th October. About 95 sugar mills were in operation as on 15th November, and they have currently produced 1.12 lac tonnes of sugar as compared to 4.31 lac tonnes produced by 114 sugar mills in the corresponding period last year.

In Karnataka:

In Karnataka, 38 out of 65 sugar mills have begun their crushing operations from 15th November as compared to 30 sugar mills in the same period last year. Till 15th November, sugar production in Karnataka was at 3.76 lac tonnes as compared to 1.60 lac tonnes in the same period last year.

In Gujarat:

About 17 sugar mills in the state of Gujarat have commenced crushing operations and have produced around 62,000 tonnes of sugar as compared to 16 mills in Gujarat with 1.21 lac tonnes till 15th November 15.

In Tamil Nadu:

As far as Tamil Nadu is concerned, 4 sugar mills were in operation as on 15th November, and currently they have produced 30,000 tonnes as compared to 40,000 tonnes produced by 6 mills in the same period previous year.

In Andhra Pradesh and Telangana:

Four (4) mills in Andhra Pradesh and Telangana began their crushing producing 5,000 tonnes of sugar till 15th November as compared to 2 mills last year producing same amount during the same period.