Mumbai: Shares of sugar companies on Monday showed gains in the stock market after the government announced additional interest-free loan of Rs 4,400 crore for sugar mills besides hiking its import duty.
Shree Renuka Sugar saw its share price soar by nearly 9 percent to Rs 28.90, while Balrampur China gained over 8 percent to Rs 86.30.
Bajaj Hindusthan rose 8.6 percent to Rs 29.15, EID Parry by 8 percent to Rs 222.2, Dhampur Sugar by over 8 percent to Rs 65.80, Dwarikesh Sugar by 5 percent to Rs 41.55, Rajshree Sugar by 5 percent to Rs 32, Sakthi Sugar by 5 percent to Rs 24.85 and Simbhaoli Sugar by 5 percent to Rs 22.2.
Shares of Dalmia Bharat Sugar, Oudh Sugar Mills and Uttam Sugar also rose by nearly five percent each.
The loan will be provided to cash-starved sugar mills to make payments to cane farmers, while the import duty on sugar will be hiked to 40 percent from the current 15 percent, Food and Civil Supplies Minister Ram Vilas Paswan said.
Besides, government will extend sugar export subsidy of Rs 3,300 per tonne till September this year.
