Shares of sugar sector companies faced a significant decline of up to 4% in morning trading following the Indian government's immediate ban on sugar exports, effective until September 30. Dwarikesh Sugar Industries was the biggest loser, with its stock dropping 3.6% to ₹45.03 on the National Stock Exchange (NSE). Other companies, including Dhampur Sugar Mills, Balrampur Chini Mills, and Uttam Sugar Mills, also saw declines of around 3%. The ban, which applies to raw, white, and refined sugar, marks a policy shift from 'restricted' to 'prohibited' exports. However, it does not affect exports to the European Union and the United States under the tariff rate quota scheme or shipments already in the pipeline. Analysts, including Ponmudi R, CEO of Enrich Money, indicate that this ban will likely pressure sugar stocks in the near term, as it may lead to excess supply in the domestic market, thereby reducing sugar prices and impacting profitability for mills that were relying on export earnings.