Shares of sugar companies plunged as much as 15% on intraday BSE in Tuesday’s trading session as the government plans to cap sugar exports for this year at 10 metric tons, Zee Business said quoting the Bloomberg report.
Individually, shares of Shree Renuka Sugars fell the most by nearly 15%, followed by Uttam Sugars down 10%. While shares of Balrampur Chinni, Dwarikesh Sugar and Dalmia Bharat Sugars each fell 9-10% on intraday BSE.
Similarly, Triveni Engineering Industries fell more than 6%, while Dhampur Sugars and EID Parry each fell more than 5 and 3% respectively on intraday BSE.
According to Bloomberg, quoted by Zee Business, “the government is considering limiting sugar exports amid rising food prices around the world.”
— Zee Business (@ZeeBusiness) May 24, 2022
Indian Sugar Mills Association (ISMA) expectations earlier in April 2022 had said that exports for this year ending September 2022 were expected to be 9 MT.
According to ISMA, sugar production in the country increased by 11.2% year-on-year (year-on-year) to 31 million tonnes in the first six months of the current sugar season. due to significantly higher yields per hectare and better sugar recovery.
The dual factor of low opening stock and strong sugar export has played a vital role in India’s stock management in the current season, Care Edge Ratings said in its report.
Rising international sugar prices and growing exports have pushed even domestic prices higher. As a result, wholesale prices in India increased by an average of 7.8% to Rs 36 per kg during the period October 2021 to March 2022, the rating agency said.
The government is taking all measures to control inflation. Last week he cut excise duties on petrol and diesel, bringing relief to the common man and also announced a subsidy on LPG cooking gas.