Sugar stocks gain on hike in import duty

Sugar stocks surged by up to 4 per cent today after the government decided to raise import duty to 40 per cent and remove the excise duty on ethanol.
Triveni Engineering & Industries surged 4.14 per cent, Dhampur Sugar Mills rose by 2.21 per cent and Sakthi Sugars gained 1.85 per cent.
Shares of Bajaj Hindusthan Sugar went up by 0.68 per cent and Shree Renuka Sugars rose by 0.32 per cent on the BSE.
With cane arrears mounting to Rs 21,000 crore, government today decided to raise import duty on sugar to 40 per cent, from 25 per cent, and remove excise duty on ethanol to help mills clear dues to farmers.

These decisions were taken at a meeting of the Cabinet Committee on Economic Affairs (CCEA).
The government said that these steps would significantly improve the adverse price sentiments in respect of sugar and would improve the liquidity in the industry, facilitating the clearing up of cane dues arrears of the farmers.