Sugar stocks dip as government imposes export duty

Ugar Sugar, Simbhaoli Sugars, Oudh Sugar, Rajshree Sugars and Sakthi Sugars are down over 6% each

Shares of sugar companies are under pressure with most of the stocks trading lower by up to 10% after the government imposed 20% customs duty on sugar exports to boost domestic supply and ensure that traders don’t ship out sugar to take advantage of favourable international markets.

Ugar Sugar Works (down 9% at Rs 51), Simbhaoli Sugars (9% at Rs 48) , KCP Sugar & Industries (down 8% at Rs 40), Oudh Sugar Mills (8% at Rs 129), Rajshree Sugars & Chemicals (7% at Rs 83), Sakthi Sugars (8% at Rs 46), Upper Ganges Sugar & Industries (7% at Rs 381), Kesar Enterprises (6% at Rs 60) and Uttam Sugar Mills (6% at Rs 81) were down more than 5% each on the BSE.

At 11:41 AM, the S&P BSE Sensex was up 0.45% or 119 points at 26,645.

According to PTI reports, sugar prices drifted by Rs 21 to Rs 3,727 per quintal in futures market today as participants engaged in trimming positions, triggered by the government's decision to impose customs duty on exports. CLICK HERE TO READ FULL REPORT.

Thus far in June 2016, most of the sugar stocks that hit multi-year highs and had outperformed the market by rallied by up to 150% as compared to 0.53% decline in the benchmark index till yesterday.

Global sugar prices have risen 53%t in the past six months to around 20 cents per pound due to delayed harvest of the Brazilian crop. Brazil is the world’s largest producer of sugar and competes with India in the international market. LINK

Company	31/05/2016	16/06/2016	% chg	LTP	% chg
Upper Ganges	166.30	408.55	145.67	381.00	-6.74
Thiru Arooran	57.65	118.85	106.16	114.50	-3.66
Ugar Sugar Works	28.00	56.20	100.71	51.00	-9.25
Kesar Enterprise	33.45	64.15	91.78	60.10	-6.31
Dharani Sugars	33.80	64.30	90.24	61.10	-4.98
Rajshree Sugars	47.70	89.15	86.90	82.85	-7.07
Oudh Sugar Mills	79.55	139.55	75.42	129.00	-7.56
Uttam Sugar	49.30	85.80	74.04	80.60	-6.06
Simbhaoli Sugar	31.40	52.75	67.99	48.00	-9.00
Mawana Sugars	40.30	65.20	61.79	61.95	-4.98
LTP : Last traded price on BSE in Rs at 11:48 AM