Balrampur Chini To SBEC: Sugar Stocks Rally As Government Allows 1.5 Million Tonnes Of Exports

Sugar stocks surged as much as 10% in early trade on Monday after the government approved the export of 1.5 million tonnes of sugar for the 2025–26 season and scrapped the export duty on molasses.

SBEC Sugar hit the 10% upper circuit, while Dhampur Sugar Mills and Shree Renuka Sugars jumped over 7%. Balrampur Chini Mills and Rajshree Sugars & Chemicals rose more than 5%, while Dwarikesh Sugar Industries and Bajaj Hindusthan Sugar gained over 4%. Dalmia Bharat Sugar and EID Parry India also traded in the green.

The rally follows the Centre’s decision to allow 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 millers at a time when the industry has been under pressure from weak domestic earnings.

Analysts remain divided on if the pricing is positive for the Indian players. Global sugar prices are currently at five-year lows, making exports less lucrative.

However, sugar shipments from Maharashtra and Karnataka could push prices higher in the months ahead. At present, global prices remain below domestic levels, suggesting limited near-term pricing advantage for Indian exporters.

Despite the export approval, the sector is not out of the woods. The lack of a revision in ethanol prices, rising sugarcane procurement costs, and lower sugar recovery rates continue to weigh on margins. These structural challenges could offset near-term gains from the export relaxation.

Apart from these factors most sugar stocks had corrected sharply after subdued second-quarter results.

Most leading sugar counters have seen significant year-to-date declines. While Shree Renuka Sugars is down 31% year-to-date, Balrampur Chini Mills fell 22% and Dalmia Bharat Sugar was down 26%.