Sugar stocks shoot up post import duty hike to 50 per cent

New Delhi: Sugar stocks today rose by up to 5.4 per cent after the government increased import duty to 50 per cent, from the existing 40 per cent, to restrict cheap inward shipments and maintain domestic prices.

Shares of Shree Renuka Sugars climbed 5.36 per cent, Dwarikesh Sugar Industries 4.69 per cent and Bajaj Hindusthan Sugar 4.33 per cent on the BSE. Dhampur Sugar Mills went up 3.98 per cent, Triveni Engineering and Industries 3 per cent, Balrampur Chini Mills 3 per cent and EID Parry India 2 per cent.

The food ministry had proposed an increase in import duty on the ground that fall in local prices will affect millers' capacity to pay cane dues to growers.

A notification issued by the revenue department yesterday said import duty on sugar (raw sugar, refined or white sugar, raw sugar if imported by bulk consumers) has been increased from the present 40 per cent to 50 per cent "with immediate effect and without an end date".