Shares in sugar companies fell sharply after a spectacular rally in the last few weeks, thanks to a sharp increase in sugar prices.
Oudh Sugars was down a huge 7 per cent, Balrampur Chini (down 3 per cent), Dhampur Sugars (down 5 per cent), Bajaj Hindustan (down 3 per cent) after the government imposed 20 percent customs duty on sugar exports to boost domestic supply and check prices which are ruling high at Rs 40/kg.
Over the last few weeks sugar stocks have been on a roll, due to increase in sugar prices.
Also, globally prices of the commodity has rallied, which had led to a sharp increase in share prices of these companies.
For many years now sugar companies were making losses, with a dismal state of the industry.