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Sugar stocks slump up to 8% intraday, as govt cuts subsidy on sugar exports – Check price levels here
The shares of sugar companies slumped by up to eight per cent on the BSE intraday on Friday as the government cut subsidy on sugar exports to Rs 4000 per tonne from Rs 6000 tonne with immediate effect on the back of strong global prices.
The central government on Thursday slashed the subsidy on sugar exports as the sector has reached 95 per cent of the quota that is 60 lakh tonnes and it won’t have a major adverse impact on the country’s sugar exports.
On an intraday basis, Praj Industries declined most by over eight per cent on the BSE to Rs 350 per share, at around 11:30 pm, as compared to the previous close of Rs 380 per share. The company is engaged in the business of process and project engineering.
While Dalmia Bharat Sugar and Dwarikesh Sugar declined by around six per cent on the BSE intraday during Friday’s trade, to touch day’s low at Rs 328 and Rs 51 per share respectively.
Similarly, Dhampur sugar tumbled by over five and a half per cent to Rs 322 per share, whereas Murrugappa group company EID Parry slumped by over five per cent to Rs 402 per share on the BSE intraday during Friday’s session.
Balrampur Chini holds itself from the biggest decline unlike other sugar stocks, however, fell by over three per on the BSE intraday to Rs 302 per share as compared to Rs 312 previous close.
Amid rising sugar prices in the international market, most of these stocks had outperformed the market by a huge margin, after reporting a strong set of numbers for the March-ended quarter.
The government has brought down the export subsidy to Rs 4.0 per kg from Rs 5.85 per kg on any sugar contracted for export on or after May 20, 2021. Out of 6.0 million tonnes (MT), 5.7 MT has already been contracted for the 2020-21 season.
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