Ruchi Soya rallies after import duty hike on edible oil

The stock rallied 6% to Rs 37.55 on NSE.

Shares of edible oil maker Ruchi Soya Industries has rallied 6% to Rs 37.55 on NSE on reports that the government has hiked import duty on both crude and refined edible oil by 5%.

The stock opened at Rs 38.05 and hit a high of Rs 38.50 on NSE. A combined 606,281 shares changed hands on the counter till 1033 hours on NSE and BSE.

The customs duty on crude oil has been increased to 7.5% from 2.5% earlier, while the duty on refined edible oil has been raised to 15% from 10%, as per the notification issued by the Central Board of Excise and Customs (CBEC), the PTI report suggests.

Industry body Solvent Extractors' Association has been demanding an increase in the import duty on crude and refined edible oils at 10% and 25%, respectively, in order to protect the domestic oilseeds processors, added report.