While the benchmark indices traded higher on Thursday, stocks of sugar companies faced losses after the government banned sugar exports until September.
The scrips of Dhampur Sugar Mills, Dalmia Bharat Sugar and Industries, and Balrampur Chini Mills declined by as much as 6.5 percent on the bourses on Thursday.
The stock of Dhampur Sugar Mills was among the biggest losers on the National Stock Exchange. While it opened 1.8 percent lower at Rs 151.05 compared to the previous close of Rs 153.90, the stock slipped further to Rs 143.80 apiece. This was a loss of over 6.5 percent.
Similarly, the stock of Dalmia Bharat Sugar and Industries declined by up to 4 percent on Thursday to Rs 353.75 compared to the previous close of Rs 366.85 apiece.
The stock of Balrampur Chini Mills also opened 1.3 percent lower at Rs 540.15 compared to the previous close of Rs 549.30 apiece.
It further declined to Rs 525 to trade at a discount of 4.4 percent from the previous closing level.
The stock of Shree Renuka Sugars also declined by up to 2.7 percent to Rs 24.19 compared to the previous close of Rs 24.88 apiece.
The downward trend in sugar stocks came after the Centre on Wednesday banned sugar exports until September.
“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,” said the notification issued by the Directorate General of Foreign Trade (DGFT) on May 13.
However, the order will not affect exports to the European Union and the United States under the tariff rate quota scheme.
Exports on food security grounds are also allowed, the notification added.
The decision to ban sugar exports was taken in view of rising domestic supply concerns.
