Sugar majors such as Balrampur Chini Mills, Shree Renuka Sugars, Dhampure Speciality Sugars came under pressure on Friday after the government of Thursday slapped 20 per cent customs duty on sugar exports to boost domestic supply and check prices which are ruling high at Rs 40 per kg.
At 9.30 am, Balrampur Chini Mills, Shree Renuka Sugars, Dhampure Speciality Sugars were trading down by 2.16 per cent, 3.53 per cent and 4.64 per cent, respectively. Later, Shree Renuka Sugars and Dhampure Speciality Sugars closed 4.61 per cent and 0.70 per cent down, while Balrampur Chini Mills settled the day 0.34 per cent up at Rs 118.55.
Other sugar majors, Mawana Sugars, Oudh Sugar Mills closed down 4.98 per cent and 10 per cent, respectively. Upper Ganges Sugar & Industries shares which surged over 400 per cent since January 2016 closed 9.94 per cent down.
The move comes at a time when prices have surged sharply in various commodities including tomato, wheat and pulses.
“To keep the domestic prices of sugar under check, the government has decided to impose export duty of 20 per cent on the export of raw sugar, white or refined sugar,” the Finance Ministry said in a release.