Shares of sugar producers climbed in the afternoon trade as the Union Cabinet has approved a Rs 8,500-crore bailout package for the sugar industry which includes Rs 4,500-crore soft loan for building ethanol production capacity and creating a 3-million-tonne stockpile to soak up excess supply.
The Cabinet, headed by Prime Minister Narendra Modi, also approved a Rs 1,300-crore interest subversion on the loan to be provided for creating new ethanol production capacity as also expanding the existing one, sources said.
E.I.D-Parry (India) Ltd rose as much as 7.5 per cent to Rs 234.7, while DCM Shriram Ltd climbed nearly 5 per cent. Ugar Sugar Works Ltd gained as much as 6.4 per cent to Rs 16.5. K M Sugar Mills Ltd gained over 4 per cent, while Bajaj Hindusthan Sugar Ltd rose nearly 6 per cent.