Sugar companies witnessed a sharp rally in the share prices on Wednesday after the the union government decided to provide interest free loans up to Rs 60 billion to sugar mills for paying off farmers dues. Currently, dues to sugarcane farmers stood at Rs 210 billion.

The banks will provide loans to sugar industry and the government will pay interest on loans provided to sugar mills.

Sakthi Sugars gained the most with rise of 16.21%, followed by Bajaj Hindusthan Sugar (11.56%), Shree Renuka Sugars (11.17%), Balrampur Chini Mills (10.26), E.I.D.-Parry (India) (7.33%) and Triveni Engineering & Industries (5.68%).

Meanwhile, EMPEE Sugars & Chemicals jumped 15.79%, followed by Uttam Sugar Mills (13.17%), Oudh Sugar Mills (12.30%), Mawana Sugars (10.69), Dhampur Sugar Mills (10%), Kesar Enterprises (9.80%) and Dwarikesh Sugar Industries (7.45%).