Dalmia Bharat leads slide in sugar stocks, tanks 13% on export ban

Sugar stocks fell sharply on Wednesday, a day after the government imposed restrictions on sugar exports from June 1 to increase availability of the commodity in domestic market and curb price rise.

Shares of Dalmia Bharat Sugar and Industries plummeted 13.40 per cent, Dwarikesh Sugar tumbled 9.38 per cent, Uttam Sugar Mills plunged 9.30 per cent and Balrampur Chini Mills tanked 8.56 per cent on the BSE.

Also, Avadh Sugar & Energy dived 8.04 per cent, Shree Renuka Sugars declined 6.69 per cent and Mawana Sugars dipped 4.97 per cent.

"Export of sugar (raw, refined and white sugar) is placed under restricted category from June 1, 2022 onwards," the Directorate General of Foreign Trade (DGFT) said in a notification on Tuesday.

In a statement, the government said with a view to maintain domestic availability and price stability of sugar in the country during sugar season 2021-22 (October-September), it has been decided to regulate the sugar exports with effect from June 1.