InvestorQ : Why did sugar stocks like Balrampur Chini, Dalmia Bharat and Triveni Engineering rally so sharply on 04th October?
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Why did sugar stocks like Balrampur Chini, Dalmia Bharat and Triveni Engineering rally so sharply on 04th October?

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Riya Dwivedi answered.
1 month ago
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On Monday, many of the major sugar stocks like Balrampur Chini, Triveni Engineering and Dalmia Bharat managed to rally by over 5-8%. This rally came after the Indian Sugar Mills Association (ISMA) reported that the sugar exports for the sugar year 2020-21 had surged by 20% to 7.1 million tonnes. In India, the sugar cycle year runs from October of the current year to September of the next year and that is a standard usage metrics.

Apart from a fall in output at two of the largest sugar exporters in the world, Brazil and Thailand, there was also a spike in demand for Indian sugar. The Indian sugar became competitive in global markets with the global spike in sugar prices. Government subsidies last year also helped. In the sugar year 2019-20, the total sugar exports were just to the tune of 5.9 million tonnes. Sugar companies are also enhancing ethanol capacity by 3X.

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