Wednesday, a day after the government announced limitations on sugar exports to go into effect on June 1, the latest in a series of efforts to reduce skyrocketing inflation, saw pressure on sugar company shares for the second straight day. The goal is to limit sugar exports and lower sugar prices on domestic markets. According to the DGFT’s directive, the export of sugar will only be permitted with a special permit from the Directorate of Sugar, Department of Food and Public Distribution, starting on 1 June 2022 and continuing through 31 October 2022, or until further order, whichever comes first.
The government of India said that it had decided to regulate sugar exports “taking into consideration the unprecedented growth in sugar exports and the need to maintain sufficient stock of sugar in the country as well as the need to safeguard interests of the common citizens of the country by keeping sugar prices under control.”
A month of rising food and oil prices in India has resulted in record inflation, and the government is taking action to reduce it. Even though India is the world’s leading exporter of wheat, the Center chose to halt shipments a few days ago.
However, it stated that sugar exported to the US and the EU under the CXL and TRQ would not be subject to these restrictions. Under CXL and TRQ, a specific amount of sugar is exported to these areas. The government announced that it has decided to limit sugar exports starting on June 1 in order to guarantee domestic availability and price stability of sugar in the nation throughout the sugar season of 2021–22 (October–September).
Sugar Stocks Tumble
In the morning trade, Dwarikesh Sugar Industries lost 8%, Dalmia Bharat Sugar and Industries lost 7%, Triveni Engineering & Industries lost 6%, Balrampur Chini Mills lost 8%, Avadh Sugar & Energy lost 6%, Shree Renuka Sugars lost 4%, and Uttam Sugar lost 5%.
Compared to a 0.21 percent loss in the benchmark index during the previous week, sugar company stock prices have fallen between 15% and 20%.
India is the second-largest exporter of sugar after Brazil and the world’s largest producer.
India had intended to limit sugar exports to 8 million tonnes, but after output projections were revised upward, the government opted to let mills sell some more sugar. According to the government, India has constantly generated excess sugar since 2010–11, more than meeting domestic demand.
According to the commerce ministry, India’s sugar exports climbed from $1.17 billion (about Rs 9,000 crore) in 2013–14 to $4.6 billion (roughly Rs 35,000 crore) in 2021–22. According to the report, India exported sugar to 121 nations worldwide.
An industry group for sugar producers, the Indian Sugar Mills Association, had earlier predicted that India’s sugar exports may reach 85 lakh tonnes in the current 2021–22 marketing year, which ends in September.
#infationindia #sugarstockprice #govtstock #sugarcompanyshare
Read more Business, Entertainment, Social, Politics , Real Estate , Finance , Sports