Sugar Stocks Fall As Government Imposes Duty To Curb High Prices

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.

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