The central government wants to limit the export of sugar for the first time in 6 years. This is aimed at preventing the rise in sugar prices in the domestic market. The government may limit sugar exports this season to 8 million tonnes. Government and industry sources have told this to Reuters. He says that an announcement regarding this can be made early next month.
Shares of sugar companies fell
Due to this news, there has been a fall in the shares of sugar companies. Shares of Mawana Sugars Ltd closed at Rs 142.25, down 5.29 per cent on the Bombay Stock Exchange on Friday. At the same time, shares of Dwarikesh Sugar closed at Rs 123.15, down 4.13 per cent. Shares of Dhampur Sugar Mills fell 3.66 per cent. Shares of Balrampur Chini Mills closed at Rs 478.70, down 2.25 per cent.
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The option of levying the levy is also being considered
A senior government privy to the matter said on condition of anonymity, “Sugar output is going to be record high. But, the stocks are depreciating rapidly due to exports. Uncontrolled exports may lead to shortage of sugar and there may be a sharp jump in local sugar prices during the festive season. Two out of three sources say there are plans to limit sugar exports to 8 million tonnes. An official said that the government is also considering the option of imposing a levy to discourage overseas sales of sugar.
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An industry official said that the government wants to start the new season with an opening stock of 60-7 million tonnes, which will be enough to meet the demand for the December quarter. The December quarter usually sees a sharp jump in demand due to the wedding season and festivals like Diwali, Dussehra.