Sugar stocks' outlook turns sour as export ban fuels panic selling

While strong lobbying to reverse curbs is expected, share prices are seen hitting new 52-week lows before the new season rolls in

The government’s move to cap sugar exports at 10 million tonnes contracted for, with no exports between June 1-October 31, 2022 (except under restrictive conditions), has led to a big negative shift in the industry perspective. Sugar stocks have seen panic selling and share prices have crashed in the last two sessions.

India along with Brazil are the two biggest producers of sugar and both are “swing players” in the export market. India has produced surplus cane and surplus sugar in the past two years, despite greater diversion to ethanol production for blending with fuels. In 2021-22, exports earned over