New Delhi, Nov. 11 -- Share prices of sugar companies surged on Monday, with one clocking double-digit gains, after the government raised the annual allocation for exports to 1.5 million tonnes and scrapped the 50% export duty on molasses, a by-product of sugar production.

The move follows a piling of sugar inventory after its diversion for the production of ethanol fell short of expectations.

Notably, the government is reviewing a law regulating sugarcane production, Mint reported. This is much needed.

Our domestic regulation was set at a time when sugar was the only major output from cane, but now the industry has diversified to ethanol, electricity, molasses and other uses. So, a revamped law is necessary so that farmers get fair pr...