Mumbai: Sugar stocks on Friday rose by over 5 percent on reports that the government plans to increase import duty to 15 percent from the current 10 per percent.
Shree Renuka Sugars soared by 5.42 percent to Rs 17.50, while Bajaj Hindusthan rose by 4 percent to Rs 15.80 on the BSE.
Among others, Sakthi Sugars was trading higher by 4.32 percent, Dhampur Sugar Mills 3.67 percent, Balrampur Chini Mills 1.85 percent, Mawana Sugars 0.28 percent, Dwarikesh Sugar Industries 0.42 percent and Rana Sugars 0.42 percent.
The government plans to increase import duty on sugar to 15 percent from the current 10 per percent 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.