Sugar stocks saw heavy buying for the second straight session on December 19 as the government may weigh raising the sugar export quota for the current marketing year after assessing domestic production in January.
In November, the government had allowed exports of 60 lakh tonnes of sugar on a quota basis till May 31, 2023.
Food Secretary Sanjeev Chopra recently said the ministry will assess the production in January and then decide whether to raise the quota or not.
At 11:30am, the share price of Dhampur Sugar, Dalmia Sugar, KCP Sugar and Balrampur Chini Mills were up 10-15 percent on heavy volumes.
Follow our live blog for all the market action
India’s production in the 2022-23 sugar season (SS ), which began in October, is estimated at a record 410 lakh tonnes before considering diversion towards ethanol.
According to estimates released by the Indian Sugar Mills Association (ISMA), this is higher by about 5 percent compared to the 392 lakh tonnes produced in the 2021-22 sugar season.
This, however, is in stark contrast to a Reuters report dated December 6 which stated that India’s output of the sweetner was likely to see a surprise 7 percent fall due to adverse weather conditions.
On the average, farmers face a 15 percent decline in yield in the country’s largest sugar-producing state Maharashtra, the report said.
India is the world’s second-largest exporter of sugar after Brazil. Any disruption in export quantities from these nations can push up global sugar prices significantly, said analysts.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
