Sugar company stocks surged in a choppy trade on Monday after a report by CNBC Awaaz said that a reduction in sugar export quota is on the table. The stocks fell between 10-20 percent and rebounded, trimming the losses.
| Stock | Movement |
| Balrampur Chini | ±10% |
| Dalmia Sugar | ±20% |
| Shree Renuka Sugar | ±20% |
| EID Parry | ±20% |
| Triveni Engineering | ±20% |
A report by CNBC Awaaz suggests that the government is likely to decrease the sugar export quota by 29 percent to 80 lakh tonnes keeping in mind the domestic needs for the commodity. The revised sugar export policy is likely to be announced soon.
In May, the government had allowed exports of 100 lakh tonnes of sugar but later allowed another 12 lakh tonnes to make the total export quota for the 2021-22 marketing year to 112 lakh tonnes.
The Indian Sugar Mills Association had demanded a rise in export quota. For 2021-22, the government had decided on the export quota at one crore tonnes. For the 2022-23 season, ISMA has demanded an export quota of 80 lakh tonnes. The demands come amid a surplus production.
According to ISMA, the total production of 355 lakh tonnes of sugar is expected. Of these, domestic demand is likely to stand near 275 lakh tonnes. Thus, ISMA expects a sugar surplus of 80 lakh tonnes this season.
Aditya Jhunjhunwala, President of Indian Sugar Mills Association (ISMA) had requested in a letter to Food and Consumer Affairs Minister Piyush Goyal earlier, "We would like to request the government to allow 80 lakh tonnes of exports for 2022-23 SS (Sugar Season)."
India's sugar exports stood at 70 lakh tonnes in the 2020-21 marketing year, 59 lakh tonnes in 2019-20 and 38 lakh tonnes in 2018-19.
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Punjab Lok Sabha elections: Complete list of Congress candidates
May 18, 2024 4:08 PM
Punjab Lok Sabha elections: Check full list of AAP candidates and constituencies
May 18, 2024 12:59 PM
PM Modi, Rahul Gandhi election rallies in Delhi today: Here are the routes to avoid
May 18, 2024 11:28 AM