Sugar stocks rallied up to 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 removed the export duty on molasses.
SBEC Sugar share price hit 10% upper circuit, while Dhampur Sugar Mills, Balrampur Chini Mills, Bajaj Hindusthan Sugar, Dalmia Bharat Sugar and Industries, Rajshree Sugars & Chemicals, Dwarikesh Sugar Industries and other sugar stocks gained between 3% and 6%.
The Union Food Ministry has allowed the export of 1.5 million tonnes (MT) of sugar for the 2025-26 sugar season, which commenced in October, according to Food Minister Pralhad Joshi.
The ministry has also scrapped the 50% export duty on molasses, a by-product of the Sugar production, to boost outbound shipments, a PTI report said.
India’s sugar season begins in the month of October.
Sugar Exports Update
India exported about 8,00,000 tonnes of sugar against an allocation of 1 MT during the 2024-25 sugar season that ended in September.
Food Secretary Sanjeev Chopra said recently the government was considering allowing sugar exports due to accumulation of surplus stocks as diversion of the sweetener for ethanol production fell short of expectations, the PTI report said.
Sugar mills diverted only 3.4 MT of sugar for ethanol manufacturing in 2024-25, well below the projected 4.5 MT, resulting in high opening stocks for the current season, he said.
Sugar Stocks Rally
SBEC Sugar share price was up 10%, Shree Renuka Sugars shares rallied 6.64%, Balrampur Chini Mills share price jumped 5.16%, Bajaj Hindusthan Sugar shares gained 4.63%, Simbhaoli Sugars stock price was up 4.9%, Dalmia Bharat Sugar shares were up 5%, and Dwarikesh Sugar share price rose as much as 4.46%.
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