Sugar stocks tumble up to 10% on wednesday

Sugar stocks tumble up to 10 percent Wednesday despite the Cabinet approving an Rs 5,500-crore package for the industry.

Shares of KCP Sugar & Industries Corporation dived 9.77 percent, Dhampur Sugar Mills slumped 9.41 percent, Triveni Engineering & Industries 7.14 percent, Ponni Sugars 6.40 percent, Balrampur Chini Mills 5.65 percent, Dwarikesh Sugar Industries 5.37 percent and Dalmia Bharat Sugar 5.03 percent on BSE.

Meanwhile, the broader market also depicted a weak trend, with the BSE benchmark Sensex tumbling 109.79 points to close at 36,542.27.

In third incentive package for sugar mills in four months, the Union government Wednesday announced a Rs 5,500 crore package for the sugar industry, including over two-fold jump in production aid to cane growers and transport subsidy to mills for exports.