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Sugar stocks tumble up to 10% on imposition of export duty

Government on Thursday imposed 20 per cent customs duty on sugar exports to boost domestic supply and check prices which are ruling high at Rs 40/kg.

BT Online | June 17, 2016 | Updated 15:57 IST
Photo: Reuters

Sugar stocks such as Uttam Sugar Mills, Rajshree Sugars & Chemical and Ugar Sugar Works declined up to 10 per cent after the government imposed 20 per cent customs duty on sugar exports on Friday.

Oudh Sugar Mills tumbled 10 per cent, Dwarikesh Sugar plunged 6.38  per cent and Bajaj Hindusthan slumped 4.82 per cent on BSE.

Government on Thursday imposed 20 per cent customs duty on sugar exports to boost domestic supply and check prices which are ruling high at Rs 40/kg.

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 raw sugar, white or refined sugar," the Finance Ministry had said in a release on Thursday.

The duty has been imposed to restrict exports following sharp rise in global prices. The duty is, however, lower than 25 per cent proposed by the Food Ministry.

India, the world's second largest sugar producer after Brazil, has exported 1.6 million tonnes of sugar so far in the 2015-16 marketing year (October-September).

(With inputs from PTI)

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