Sugar stocks zoom on import duty hike

Shree Renuka Sugars, Bajaj Hindustan, Balrampur Chini Mills, Triveni Engg, Dhampur Sugar Mills and Oudh Sugar Mills are up 5-10% on the BSE.

Shares of sugar companies are trading higher by up to 10% in otherwise subdued market on report that the government will hike import duty on sugar to 40% from the current 15%. The government has also decided to raise the mandatory blending of ethanol in gasoline to 10% from 5%.

Shree Renuka Sugars, Bajaj Hindustan, Balrampur Chini Mills, Triveni Engineering and Industries, Dhampur Sugar Mills and Oudh Sugar Mills are up 5-10% on the Bombay Stock Exchange (BSE).

The government will consider other incentives for mill owners if they clear dues owed to farmers, the Reuters report suggests quoting the food minister Ram Vilas Paswan.

In addition, the food minister extended sugar export incentives till September 2014.

Among the individual stocks, Shree Renuka Sugars has surged 10% to Rs 29.40 on the BSE.  Bajaj Hindustan, Bannari Amman Sugars and Balrampur Chini Mills have rallied 9% each.