Sugar sector stocks rallied on Wednesday after the Union Cabinet gave its approval to increase import duty on sugar from 25% to 40%. In order improve the price sentiments relating to sugar, the Government has decided to take four steps.

'These measures will significantly improve the adverse price sentiments in respect of sugar and would improve the liquidity in the industry, facilitating the clearing up of arrears of canedues to farmers,' the government said.

Bannari Amman gained the most with a gain 6.05%, followed by Triveni Engineering (3.59%), EID Parry (3.18%), Dhampur Sugar (2.21%), Dalmia Bharat Sugar (2.12%), Sakthi Sugars (2.07%), Bajaj Hindustan (1.82%) and Shree Renuka Sugars (0.24%).