Sugar stocks soar on import duty hike, interest free loans

PTI Posted online: Monday, Jun 23, 2014 at 0000 hrs
Mumbai : Shares of sugar companies today showed gains in the stock market after the government announced additional interest-free loan of Rs 4,400 crore for sugar mills besides hiking its import duty.

Shree Renuka Sugar saw its share price soar by nearly 9 per cent to Rs 28.90, while Balrampur China gained over 8 per cent to Rs 86.30.

Bajaj Hindusthan rose 8.6 per cent to Rs 29.15, EID Parry by 8 per cent to Rs 222.2, Dhampur Sugar by over 8 per cent to Rs 65.80, Dwarikesh Sugar by 5 per cent to Rs 41.55, Rajshree Sugar by 5 per cent to Rs 32, Sakthi Sugar by 5 per cent to Rs 24.85 and Simbhaoli Sugar by 5 per cent to Rs 22.2.

Shares of Dalmia Bharat Sugar, Oudh Sugar Mills and Uttam Sugar also rose by nearly five per cent each.

The loan will be provided to cash-starved sugar mills to make payments to cane farmers, while the import duty on sugar will be hiked to 40 per cent from the current 15 per cent, Food and Civil Supplies Minister Ram Vilas Paswan said.

Besides, government will extend sugar export subsidy of Rs 3,300 per tonne till September this year.