Sugar Sector

Centre's move to allow 1.5 million tonnes of sugar exports offers relief to a stressed sector grappling with ethanol allocation cuts, cane price hikes, and growing political pressure

Should you bet on sugar stocks ahead of the new sugar season? Technical charts suggest that these 5 stocks can potentially rally up to 25% from here.

The sugar season for 2025-26 promises to be bountiful, with a projected surplus of almost 12 million tonnes to be produced this season, raising hopes for both exports and ethanol

The government has allowed sugar mills, distilleries to make ethanol from sugarcane juice, syrup and all types of molasses without any restrictions on volumes in Ethanol Supply Year (ESY) 2025-2026.

Sugar trade association AISTA on Wednesday requested the government to allocate export quotas only to mills willing to ship from their own facilities, saying the current system hampers exports and hurts mill profitability. The All India Sugar Trade Association (AISTA) said the existing quota system, which distributes limited export allocations to all mills based on past production, allows remote or export-reluctant mills to sell their quotas to others, leaving substantial quantities unexported. "This leads to mills located at remote places or not interested in exports to sell their export quota to others. A substantial quantity even remains unexported, resulting in a higher than desired stock of sugar with mills," AISTA said. Sugar exports are currently on a restricted list, with the government controlling volumes through quotas distributed proportionally among mills. AISTA also criticised the 50 per cent export duty imposed on ethanol since January 15, 2024, saying it has failed t

India's sugar production declined 18.38 per cent to 25.82 million tonnes till July in the current season ending October, down from the year-ago period, as major producing states reported lower output, the National Federation of Cooperative Sugar Factories Ltd (NFCSFL) said on Wednesday. The cooperative body expects total output to reach 26.11 million tonnes for the full season, well below the 31.9 million tonnes produced in 2023-24. Special crushing operations in Karnataka and Tamil Nadu, which run from June to September, are underway and expected to add some more tonnes to the total. Seven mills are operating in Karnataka compared to one last year, while Tamil Nadu has nine mills running versus 11 in the prior year. According to NFCSFL, Uttar Pradesh, India's largest sugar producer, saw output fall to 9.27 million tonnes till July from 10.36 million tonnes a year earlier. Maharashtra, the second-largest producer, reported a steeper decline to 8.09 million tonnes from 11 million .

India exported 5.16 lakh tonnes of sugar till June 6 of the ongoing 2024-25 marketing year with maximum shipments of 1,18,553 tonnes to Somalia, trade body AISTA said on Tuesday. The sugar marketing year runs from October to September. Sugar exports for the 2024-25 marketing year in India were allowed on January 20, 2025. The total quantity permitted for export is 10 lakh tonnes. According to the All India Sugar Trade Association (AISTA), mills have exported a total of 5,16,782 tonnes of sugar till June 6 of the current marketing year. Out of which, white sugar exports were at 4.09 lakh tonnes, refined sugar 81,845 tonnes and raw sugar at 25,382 tonnes till June of this year. About 23,219 tonnes of sugar are under loading, it said in a statement. Of the total exports undertaken so far, maximum shipments have been to Somalia at 1,18,553 tonnes, followed by Sri Lanka at 76,401 tonnes, Afghanistan at 72,833 tonnes, and Djibouti at 69,609 tonnes. AISTA had recently said that total

NFCSF projects overall 2024-25 season sugar production at 26.11 million tonnes, down from 31.9 million tonnes in the previous season

The government will take stringent action against the sugar mills violating monthly stock holding limit orders, the Food and Consumer Affairs Ministry said on Friday. The ministry prescribes monthly stock holding limits for white/refined sugar to prevent hoarding and control price increases. For April, the stock holding limit is set at 23.5 lakh tonnes. In a directive issued to mills, the ministry said it has found repeated violations by some group and individual sugar mills despite previous warnings, prompting the issuance of new, stricter guidelines. Key penalties include: for first-time violations, 100 per cent of excess sugar sold will be deducted from the subsequent month's release quota. Subsequent violations will see progressively higher deductions: 115 per cent for the second, 130 per cent for the third, and 150 per cent for the fourth violation. Mills dispatching less than 90 per cent of quota without intimation will have restricted future allocations. Multiple violatio

Sources attribute the slump in power production from bagasse to govt's reluctance to revise tariff rates

The drop in consumption is largely due to absence of any big events like the 2024 General Elections which is believed to have pushed up sugar consumption in India

Maharashtra and Gujarat are among the states where a significant portion of the sugar production is through cooperatives

With a high differential in pricing vis-a-vis normal plastics, and backed by a generous Uttar Pradesh policy, sugar producers eye new opportunities in the climate-friendly product

Key players in the sector, including Shree Renuka Sugars, Dhampur Sugars, and Balrampur Chini Mills, were among the top gainers.

sugar mills and distilleries can produce ethanol from sugarcane juice/sugar syrup, B-Heavy molasses, as well as C-Heavy molasses, during ESY2024-25 as per their agreements with oil marketing companies

Raw sugar commands a higher price than refined sugar and could boost revenue in the market

Joint meeting of all associations to be convened to form a common response before September deadline

Sugar stocks, Ethanol price hike news: The price revision is being considered on priority to incentivise production and meet our blending goals, reports said

The government on Monday ruled out possibility of allowing sugar exports in the current 2023-24 season ending October, the industry's persistent demand notwithstanding. Currently, there are curbs on export of sugar for an indefinite period. However, Indian Sugar Mills Association (ISMA) has requested the government to allow export of 10 lakh tonne of sugar in the 2023-24 season, anticipating healthy closing stock by the season-end. "As of now, the government is not considering sugar exports although the industry has demanded," a senior food ministry official told PTI. The country's sugar production crossed 30 million tonne till March of the ongoing 2023-24 season. ISMA has revised net sugar production estimate for 2023-24 season to 32 million tonne. The government has estimated sugar output at 31.5-32 million tonne. Meanwhile, the government is considering allowing sugar mills to use excess stock of B-heavy molasses for ethanol production this year.

The counter has seen heavy volumes of around 4.06 lakh shares as against the two-week average volume of around 1.46 lakh shares on the BSE.