Sugar stocks gain on hike in import duty

Shares of sugar companies were trading higher by upto 7% on BSE after the government increased import duty on sugar to 50%, up from 40%, to restrict cheap inward shipments and maintain domestic prices. Ugar Sugar Works, Sakthi Sugars, Thiru Arooran Sugars, KCP Sugar & Industries, Rajshree Sugars, Simbhaoli Sugar and Shree Renuka Sugars were up between 4% and 7% on the BSE. Dhampur Sugars, Mawana Sugars, Bannari Amman Sugars and Bajaj Hindustan were up 2% to 3%. In past one-week, most the sugar stocks have outperformed the market by gaining in the range of 5% to 22%, as compared to 1.8% rise in the S&P BSE Sensex.
A notification issued by the revenue department said that import duty on sugar (raw sugar, refined or white sugar, raw sugar if imported by bulk consumers) has been increased from the present 40% to 50% "with immediate effect and without an end date". Commodity Trading Tips