Sugar stocks tank up to 10% on imposition of export duty

Sugar stocks today plunged by up to 10 per cent after the government imposed 20 per cent customs duty on sugar exports.
Oudh Sugar Mills slumped 10 per cent, Uttam Sugar Mills dipped 9.97 per cent and Simbhaoli Sugars tanked 9.95 per cent on BSE.
Among others, Sakthi Sugars dropped 8.59 per cent, Dwarikesh Sugar tanked 6.38 per cent, Bajaj Hindusthan (4.82 per cent), Shree Renuka Sugars (4.61 per cent) and EID Parry (2.21 per cent).
Government yesterday imposed 20 per cent customs duty on sugar exports to boost domestic supply and check prices which are ruling high at Rs 40/kg.

The move comes at a time when prices have surged sharply in various commodities including tomato, wheat and pulses.
"To keep the domestic prices of sugar under check, the government has decided to impose export duty of 20 per cent on raw sugar, white or refined sugar," the Finance Ministry had said in a release yesterday.
The duty has been imposed to restrict exports following sharp rise in global prices. The duty is, however, lower than 25 per cent proposed by the Food Ministry.
India, the world's second largest sugar producer after Brazil, has exported 1.6 million tonnes of sugar so far in the 2015-16 marketing year (October-September).