Sugar companies rally as government hikes import duty to 25%

MUMBAI: Shares of sugar companies spiked up in trade after the government hiked import duty on sugar. Higher import duty will reduce sugar imports in the country and benefit local players.

Import duty on white, raw and refined sugar is hiked to 25 per cent from 15 per cent. The hike will be effective from midnight of August 21.

According to M Manickam, Vice Chairman and Managing Director, Sakthi Sugars, the government must now focus to bring sugar and cane prices on parity, and build sugar buffer.

In an interview to ET Now, he told that hike in import duty is beneficial for the industry but that there is need to have a linkage between sugar and cane prices.

“Import duty hike may not have much impact on sugar prices,” he said and added that the companies “may not have enough sugar stock for 2015 festive season.”

At 02:30 p.m; Bajaj Hindustan was up 6.43 per cent, Balrampur Chini gained 3.68 per cent, Dhampur Sugar moved 3.41 per cent higher, Dwarikesh Sugar rallied 7.83 per cent, Shree Renuka Sugar added 5.43 per cent and Oudh Sugar jumped 7.06 per cent.