Kolkata: Stocks of sugar companies tumbled today during the morning session. Dhampur Sugar Mills slipped 6.95%, Dwarikesh Sugar Industries fell 6.65%,
Uttam Sugar Mills fell 5.60%, Bajaj Hindusthan Sugar declined 4.95%, Mawana Sugars came down 4.83% and Dalmia Bharat Sugar went down 3.98%, Triveni Engineering & Industries declined 3.85%, Rajshree Sugars & Chemicals went down 3.42%, Sakthi Sugars slipped 2.92%, Balrampur Chini Mills dipped 2.52% and Shree Renuka Sugars declined 2.13%.
India is a major sugar exporter and following the ban on exportsby the Centre, prices of raw and white sugar went up in the global market. New York Raw Sugar Futures climbed by over 2% while London White Sugar Futures recorded rose about 2%. The decision by New Delhi was to priortise domestic consumers. On the other hand, it could provide fresh opportunity for economies such as Brazil and Thailand to increase their exports to Asian and African countries. The decision to ban exports was taken on May 13 and was imposed with immediate effect. According to a notification issued by the government, this restriction will remain effective until September 30, 2026, or until further orders are issued. India is the world’s second-largest sugar producer. The stocks in the sugar sector will be in focus of the investors.
Exemption for certain shipments
The administration has said that certain shipments will get an exemption from the ban. If loading of cargo began before the notification was issued, or where the shipping bill was already been filed and the vessel arrived at an Indian port, the exemption will be granted. Also if the sugar has already been handed over to customs authorities or custodians, export clearance will still be granted.
Domestic production could fall short
The decision to ban exports was taken after it was felt that sugar production could fall short of demand this year. The government earlier permitted the sugar mills to export 1.59 million metric tons of sugar since it was estimated that production in the country would exceed domestic demand. Poor yields in key sugarcane-producing regions and weather-related risks, have triggered concerns and led to the ban. Both IMD and Skymet have predicted severe El Nino conditions taking a grip this year, which can affect rainfall and lead to a rise in summer temperature.
Sugar stocks in focus
Balrampur Chini: Rs 547.50
Triveni Engg: Rs 389
Shree Renuka Sugar: Rs 24.96
Bannari Amman Sugars: Rs 3,620
Bajaj Hindusthan: Rs 18.72
Dalmia Bharat: Rs 1,775.90
M.V.K. Agro: Rs 498.20
Dhampur Sugar: Rs 153.60
Avadh Sugar: Rs 489.85
Uttam Sugar Mills: Rs 254.10
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