Sugar stocks in demand

Eastern Sugar & Industries (up 9.88%), Upper Ganges Sugar & Industries (up 4.98%), Sakthi Sugars (up 4.39%), Shree Renuka Sugars (up 3.61%), Bajaj Hindusthan (up 3.43%), Dhampur Sugar Mills (up 3.26%), Balrampur Chini Mills (up 2.47%), Oudh Sugar Mills (up 1.20%), EID Parry (India) (up 1.07%), Rana Sugars (up 0.84%), KCP Sugar & Industries Corporation (up 0.57%) and Triveni Engineering & Industries (up 0.27%), edged higher.

The S&P BSE Sensex was up 164.58 points, or 0.85% at 19,575.42.

According to reports, the government has decided to hike import duty on sugar to 15% from the current 10% in order to curb shipments. Indian mills import sugar despite a surplus local production, as the sweetener is cheaper in the global market due to a bumper sugar output in Brazil.

The imports are putting pressure on domestic prices and thereby preventing millers from clearing sugarcane arrears to farmers. Sugarcane arrears, or the amount sugar mills owe to farmers, has reportedly risen to Rs 9000 crore, as mills are struggling due to a drop in local sugar prices.

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