Sugar stocks extend rally on slew of positive measures

Bajaj Hindustan, Shree Renuka, Balrampur Chini, Oudh Sugars, Ugar Sugar, Simbhaoli Sugars and EID Parry are up 2-10% on the BSE.

Shares of sugar companies continued their upward march for the second day in a row, after the Union government announced a slew of positive measures to help the sector on Monday.

Bajaj Hindustan, Shree Renuka Sugars, Balrampur Chini Mills, Oudh Sugars, Ugar Sugar Works, Ponni Sugar Erode, Simbhaoli Sugars and EID Parry are trading higher between 2-10% on the Bombay Stock Exchange (BSE).

After a meeting on Monday, Food Minister Ram Vilas Paswan announced import duty on sugar had been increased from 15% to 40%. Mandatory ethanol blending with petrol was increased from 5% to 10%.

The government also extended the period for interest-free loans to mills equivalent to the excise duty paid by them from two years to five years. The export incentives period was extended up to September.

Among individual stocks, Bajaj Hindustan has surged 10% to Rs 32.45, extending its previous day’s 10% rally on the BSE. Balrampur Chini Mills has moved higher by 3.5% to Rs 88, also its 52-week high on the BSE.  The stock closed 7% higher on Monday.