Sugar stocks extend gains on import duty hike, govt loan to mills

Shares of sugar companies soared higher for the second day in a row after the government announced interest-free loans for cash-strapped mills and hiked import duty.

Bajaj Hindusthan rose by nearly 7 per cent to Rs 31.55, while shares of Shree Renuka Sugar, Balrampur Chini, Dwarikesh Sugar, EID Parry, Dhampur Sugar, Simbhaoli Sugar gained by 1-5 per cent at the BSE.

Rajshree Sugar, Sakthi Sugar, Dalmia Bharat Sugar, Oudh Sugar Mills and Uttam Sugar also registered smart gains.

Sugar stocks had gained on Monday too after the government said that loans 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.

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