Sugar stocks get sweet

The long awaited demand of the sugar sector was finally taken care of. The Govt doubled the import duty on sugar to 100% from 50%, mainly with an aim to curb cheap imports and protect the interests of the domestic farmers.

This doubled import duty is with immediate effect and without an end date.

With ex-mills rate falling below cost of production, farmers have not been getting their cane payments; hopefully with this, the situation will now get corrected.

As against a consumption of 25 MT for the current year of 2017-18 (October to September), sugar production was revised upwards by 4% to 26.1 MT v/s 20.3 MT (YoY).

Reacting to this news, Bajaj Hindusthan went up 3.5% to Rs.13.89; Upper Ganges, Uttam Sugar, Dalmia Bharat are all up in the green.