Sugar stocks under pressure; Balrampur Chini, Ugar Sugar down over 5%

Dalmia Bharat Sugar, Thiru Arooran, Balrampur Chini, Uttam Sugar and Oudh Sugar were down over 5% on the BSE

Shares of sugar companies were under pressure and trading lower by up to 9% on concerns of lowering import duty on sugar and banning exports of the sweetener.

Dalmia Bharat Sugar (down 9% at Rs 85), Balrampur Chini Mills (7% at Rs 102), Thiru Arooran Sugars (7% at Rs 56), Ugar Sugar Mills (6% at Rs 28.50), Uttam Sugar Mills (6% at Rs 48.25), Oudh Sugar Mills (6% at Rs 76), Rajshree Sugars & Chemicals (6% at Rs 44) and were down more than 5% on the BSE.

At 12:38 pm, the S&P BSE Sensex was down marginally 0.02% or 6 points at 25,224.

According to PTI reports, the government said Saturday it will consider lowering import duty on sugar and banning exports of the sweetener if prices spike further from the current level.

With retail prices crossing Rs 40/kg, the government has taken several steps, including imposition of stock holding limits on sugar traders and withdrawal of sugar output subsidy of Rs 4.50/kg to mills, in the last few weeks to check the price rise, added report. CLICK HERE TO READ FULL REPORT.

According to Reuters report, Brazil's cane harvest has got off to a flying start in predominantly favourable weather in the centre-south, auguring for ample availability of Brazilian supplies to Asian markets. CLICK HERE TO READ REPORT