Sugar stocks on Friday rose by over 5 per cent on reports that the government plans to increase import duty to 15 per cent from the current 10 per cent.
Shree Renuka Sugars soared by 5.42 per cent to Rs 17.50, while Bajaj Hindusthan rose by 4 per cent to Rs 15.80 on the BSE.
Among others, Sakthi Sugars was trading higher by 4.32 per cent, Dhampur Sugar Mills 3.67 per cent, Balrampur Chini Mills 1.85 per cent, Mawana Sugars 0.28 per cent, Dwarikesh Sugar Industries 0.42 per cent and Rana Sugars 0.42 per cent.
The government plans to increase import duty on sugar to 15 per cent from the current 10 per cent in order to curb shipments and clear sugarcane arrears to farmers estimated at about Rs 9,000 crore.
The imports are putting pressure on domestic prices and thereby preventing millers from clear cane arrears to farmers.
Currently, millers are selling sugar to wholesalers/traders at rates lower than even the cost of production.
According to the Indian Sugar Mills Association (ISMA), the country has imported nearly 6,00,000 tonnes of raw sugar and another 1,00,000 tonnes of refined sugar from Pakistan so far this marketing year.