Sugar stocks trade weak in a firm market on reduction in export subsidy

The government reduced the export subsidy from Rs 5.85 / kg to Rs 4.0 / kg on any sugar contracted for export on or after May 20, 2021

Shares of sugar manufacturers were trading weak (down by up to 8 per cent) on the BSE in intra-day trade on Friday in an otherwise strong market after the government slashed subsidy on sugar exports from Rs 6,000 per tonne to Rs 4,000 per tonne with immediate effect in view of firm global prices.

Dalmia Bharat Sugar and Industries, Bajaj Hindustan Sugar, Dhampur Sugar Mills, Dwarikesh Sugar Industries, Balarampur Chini Mills, Uttam Sugar Mills and Avadh Sugar Mills were down 3 per cent to 5 per cent on the BSE. Praj Industries, engaged in the business of process and