Sugar stocks extend fall on concerns of record output

Shares of sugar companies continue to trade lower for the fifth straight session, falling by up to 30%, on concerns of higher production which may pull down the prices of raw sugar.

Balrampur Chini Mills, Avadh Sugar & Energy and Dalmia Bharat Sugar and Industries were down 10% on the BSE. These stocks tanked in the range of 28% to 30% in past five trading sessions. Besides these three, as many as 20 sugar stocks were trading at their multi-months lows.

The Indian Sugar Mills Association (Isma) increased its earlier estimates for the country's sugar production by 45% to 29.5 million tonnes (mt) for 2017-18, after major producers Maharashtra and North Karnataka reported substantially higher yields per hectare.