Sugar Stock Slide: Impact of Export Ban

Shares of sugar companies saw a significant drop after the government imposed an export ban on sugar to boost domestic supply and control prices. Notable companies like Dhampur Sugar Mills and Dwarikesh Sugar Industries experienced steep declines. Meanwhile, benchmark indices showed positive movement, with significant gains in BSE Sensex and NSE Nifty.

Sugar company shares faced a downward trend on Thursday, shedding up to 7% of their value, following the government's move to ban sugar exports until September 30. This policy aims to increase domestic availability and stabilize prices. Notably, Dhampur Sugar Mills and Dwarikesh Sugar Industries were among the biggest losers with declines nearing 7%.

Other major companies such as Uttam Sugar Mills and Bajaj Hindusthan Sugar also faced significant losses. Despite the sector's downturn, the broader market showed resilience; the BSE Sensex surged by 522.64 points, while the NSE Nifty climbed 95.65 points during late morning trading.

The government explained that the export classification for sugar was changed from 'Restricted' to 'Prohibited,' except for shipments to the EU and US under specific quota arrangements. The decision is intended to curb prices and ensure sufficient domestic stock.