InvestorQ : What explains the sharp fall in most of the sugar shares in last few days?
Katherine Gonsalves made post

What explains the sharp fall in most of the sugar shares in last few days?

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rhea Babu answered.
2 months ago
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Over the last 2 days, most of the sugar stocks have come under pressure in the market on account of the export limits placed by the government to curb too much exports of sugar. This is part of the government initiative to curb the price of sugar by making more sugar available domestically Government and RBI have been fighting inflation at close to 7.8% through a combination of monetary and fiscal measures to curb inflation.

Sugar shares came under immense pressure losing more than 9% in a single day. This was largely on account of a lim9it on the lucrative export of sugar by the mills. The government set the upper limit for sugar exports in sugar year 2021-22 at 10 MTPA. The sugar year normally runs from October to September next year and the current sugar year will end in September 2022. Already 7.8 MT of sugar has already been exported and 9 MT has been contracted for exports. This could cause a domestic sugar glut Sugar stocks corrected 15% in last one week.

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