Sugar stocks like Balrampur Chini Mills, Dalmia Bharat Sugar, Bajaj Hindusthan Sugar, Shree Renuka Sugars, Triveni Engineering & Industries, EID Parry and Bannari Amman Sugars declined on Thursday, May 14, after the government banned the export of sugar with immediate effect till September 30 or until further orders.

At 9:18 am, shares of Balrampur Chini Mills, Shree Renuka Sugars, and EID Parry were trading lower by 3.13%, 1.13% and 1.08%, respectively.

Stocks of Dalmia Bharat Sugar, Bajaj Hindusthan Sugar, Triveni Engineering & Industries, and Bannari Amman Sugars were also down 2.38%, 2.78%, 1.2% and 1.38%, respectively.

The Directorate General of Foreign Trade (DGFT) in a notification dated May 13 stated that the ban applies to raw sugar, white sugar and refined sugar. The government also amended the export policy from 'Restricted' to 'Prohibited'.

"This prohibition shall not apply to sugar being exported to the EU and the USA under CXL and TRQ quota…Export of sugar under the Advance Authorization Scheme (AAS) shall continue to be government as per existing provisions of the Foreign Trade Policy, 2023 and the Handbook of Procedures, 2023," the notification said.

The export, however, shall be allowed on the basis of permission granted by the government to other nations to meet their food security requirements and based on the requirements of their governments, it added.

The notification clearly mentions that loading of sugar on ships would be permitted if it had commenced before May 13 or the consignment had been handed over to the customs department before the publication of this notification.

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The export will also be allowed where the "shipping bill has been filed and the vessel has berthed or arrived and anchored in an Indian port, with its rotation number allocated by the Port Authority, before the date of publication of this Notification in the Official Gazette."