Sugar Stocks Continue To Remain Under Pressure, Fall Up To 20% In 1-Week

The decline in leading sugar stock continues as central government has instructed all sugar mills to avoid using sugarcane juice or syrup for ethanol production this year in order to ensure adequate supplies of the sugar in local market. The decision has come after reports that sugar production is likely to down in 2023-24 season. The government has permitted production of ethanol from B-heavy molasses as it is. It is worth noting that many sugar firms depend on ethanol production for a large share of their incomes.

The latest move to curb ethanol production using sugarcane has come after below normal rainfall key growing states. "After assessing the demand-supply situation, the committee of ministers decided to focus on sugar production this year," said one of the government sources told Reuters.

According to Reuters, the government's move is a big jolt for the industry as it has invested billions of dollars in the last five years to boost ethanol production capacity. However, the government has allowed the use of 'B-molasses' for ethanol production in 2023-24.

Meanwhile, below are leading sugar stocks that witnessed decline after the latest directive by central government:
Dalmia Bharat Sugar and Industries Ltd: Share of Dalmia Bharat Sugar declined 1.24% in trade today. Current market price of Dalmia Bharat Sugar share on BSE is Rs 403.55 per share with intraday fall of 1.24%. Dalmia Bharat Sugar shares slipped 13.46% in last 1-week only.

Balrampur Chini Mills: Shares of Balrampur Chini fell 2.49% intraday to 398.25 apiece today. Balrampur Chini shares slipped 15.50% in last 1-week only.

Shree Renuka Sugars Ltd: Shares of Shree Renuka Sugars dived 5.83% in trade today to 45.09 apiece. Shree Renuka Sugars shares dipped 9.51% in last 7 days span.

Triveni Engineering & Industries Ltd: Triveni Engineering shares fell 2.43% in trade today to 336.85 per share. Triveni Engineering stock declined 12.81% in last 1-week.

Dhampur Sugar Mills Ltd: The sugar stock declined 3.99% in trade today and fell 11.53% in last 1-week only. Current market price of Dhampur Sugar Mills share on BSE is Rs 241.65 per share.

Uttam Sugar Mills Ltd: It fell 2.59% intraday. Current market price of Uttam Sugar Mills share on BSE is Rs 398.45 per share. Uttam Sugar Mills shares saw steep fall of 20.55% in last 1-week time.

Dwarikesh Sugar Industries Ltd: The stock fell 3.13% in trade today. Current market price of Dwarikesh Sugar share on BSE is Rs 84.25 apiece. Dwarikesh Sugar shares fell 7.34% in last 1-week.