Mumbai: Shares of sugar companies on Tuesday soared higher for second day in a row after the government announced interest-free loans for cash-strapped mills and hiked import duty.

Bajaj Hindusthan rose by nearly 7 percent to Rs 31.55, while shares of Shree Renuka Sugar, Balrampur Chini, Dwarikesh Sugar, EID Parry, Dhampur Sugar, Simbhaoli Sugar gained by 1-5 percent at the BSE.

Rajshree Sugar, Sakthi Sugar, Dalmia Bharat Sugar, Oudh Sugar Mills and Uttam Sugar also registered smart gains.

Sugar stocks had gained yesterday also by up to 10 percent after the government said that loans will be provided to cash-starved sugar mills to make payments to cane farmers, while the import duty on sugar will be hiked to 40 percent from the current 15 percent.

Besides, government will extend sugar export subsidy of Rs 3,300 per tonne till September this year.--- PTI