Balrampur, Dhampur: Sugar stocks gain up to 7% as govt clears 1.5MT exports

Sugar stocks: Shares of sugar manufacturers zoomed by up to 7 per cent on the NSE in Monday's intraday trade after the government approved sugar exports and removed duties on a key by-product. 

 

Shares of Balrampur Chini Mills surged nearly 7 per cent to hit an intraday high of ₹456.1 on the NSE. Shree Renuka Sugars surged 7.4 per cent to ₹29.9, followed by Dhampur Sugar Mills (7.3 per cent at ₹142), Dwarikesh Sugar Industries (4.2 per cent at ₹43.7), Rajshree Sugars and Chemicals (5.4 per cent at ₹39.98), and Uttam Sugar Mills (4.8 per cent at ₹247)

 

Among others, Bajaj Hindusthan Sugar, Dalmia Bharat Sugar, and EID Parry India also rose by up to 5 per cent. In comparison, the benchmark NSE Nifty50 was trading at 25,633.80 levels, up by 141.50 points or 0.56 per cent. 

 

Make smarter market moves with The Smart Investor. Daily insights on buzzing stocks and actionable information to guide your investment decisions delivered to your inbox.

Subscribe

Here's why sugar stocks are rising:

The rally in sugar stocks comes after the government cleared the exports of 1.5 million tonnes of sugar for the 2025-26 sugar season, which began in October. The move opens up an export window for sugar manufacturers at a time when the industry has been under pressure from weak domestic earnings. 

 

Additionally, the Union Food Ministry has announced to remove the 50 per cent export duty on molasses.

 

In a letter dated November 7 to Karnataka Chief Minister Siddaramaiah, Food Minister Pralhad Joshi outlined steps to protect the interests of sugarcane growers. “For the current sugar season also, the central government has decided to allow the export of 15 lakh tonnes of sugar, and the 50% export duty on molasses has been removed,” Joshi said.

 

According to Food Minister Prahlad Joshi, the decision aims to support sugar mills and cane farmers facing weak diversion into ethanol and elevated production levels. The approval for exports and removal of duty is expected to ease inventory pressures and boost mill realisations.

 

However, the export allocation is lower than the 2 million tonnes demanded by the industry. 

 

In the 2024-25 sugar season, India exported around 8,00,000 tonnes of sugar compared to the allocation of 1 million tonnes. 

 

According to industry body Indian Sugar Mills Association (ISMA), India's sugar production is expected to increase 16 per cent to 343.5 lakh tonnes in the current 2025-26 season, driven by higher output in Maharashtra. The gross sugar production stood at 296.10 lakh tonnes in the 2024-25 marketing year.