Shares of sugar companies rose today amid hopes of export boost.
The stocks jumped tracking overnight gains in futures.
Investors rush to cover bearish bets amid growing concerns that heavy rains and drought from Thailand to Central America will tighten sugar supplies.
Shree Renuka Sugars, Bajaj Hindusthan Sugar, Dhampur Sugar Mills and Balrampur Chini Mills rose 3 to 5 per cent.
Indian mills have so far struggled to export raw sugar despite government subsidy.
Rise in international prices have raised the hopes of export parity.
March futures, which will expire on Monday, settled up 11 per cent at 14 cents on Tuesday.