Sugar stocks slump up to 7% after govt bans exports till September 30

New Delhi: Shares of sugar companies plunged up to 7 per cent on Thursday after the government banned the export of sugar till September 30 this year with immediate effect to boost domestic availability and contain prices.

The stock of Dhampur Sugar Mills tanked 6.95 per cent, Dwarikesh Sugar Industries fell 6.65 per cent, Uttam Sugar Mills dropped 5.60 per cent, Bajaj Hindusthan Sugar declined 4.95 per cent, Mawana Sugars depreciated 4.83 per cent and Dalmia Bharat Sugar and Industries went lower by 3.98 per cent on the BSE.

Shares of Triveni Engineering & Industries fell 3.85 per cent, Rajshree Sugars & Chemicals declined 3.42 per cent, Sakthi Sugars slipped 2.92 per cent, Balrampur Chini Mills dropped 2.52 per cent, and Shree Renuka Sugars went lower by 2.13 per cent.

Among others, Avadh Sugar & Energy stock fell 1.76 per cent, and EID Parry India slipped by 1.64 per cent.

Meanwhile, benchmark equity indices were trading higher, with the 30-share BSE Sensex jumping 522.64 points, or 0.70 per cent, to 75,131.62, while the 50-share NSE Nifty rose 95.65 points, or 0.41 per cent, to 23,508.25 in late morning trade.

On Wednesday, the government banned the export of sugar till September 30 this year with immediate effect, a move which would help enhance domestic availability and contain prices.

Earlier, the exports were under a restricted category, under which a license was required for the outbound shipments.

"The export policy of Sugar (Raw Sugar, White Sugar and Refined Sugar)... is amended from 'Restricted' to 'Prohibited' with immediate effect till September 30, 2026, or until further orders, whichever is earlier," the Directorate General of Foreign Trade (DGFT) said in a notification dated May 13.

This order, however, does not apply to sugar being exported to the European Union and the US under the CXL and Tariff Rate Quota (TRQ) arrangement, respectively.

The arrangements allow exporters to ship specified quantities of sugar to these destinations at significantly reduced or zero customs duties.