Sugar Stocks Slide: Balrampur Chini, Renuka Sugars, Dalmia Bharat Sugar declined on Thursday among other sugar stocks after the union government banned sugar export till September 30.
Among the laggards, Uttam Sugar Mills emerged as the worst performer among the pack. The stock fell nearly 3.7 per cent during the session to Rs 243.95, reflecting the sharpest decline. Meanwhile, Balrampur Chini Mills also saw significant selling, slipping 2.7per cent to Rs 534, while Bajaj Hindusthan Sugar declined about 2.1 per cent to Rs 18.33. Dalmia Bharat Sugar dropped 1.75 per cent to Rs 359.65, as the broader sector sentiment remained weak on expectations that the ban could weigh on margins and inventory levels across companies.
The turnaround in policy is largely driven by emerging concerns on production. Sugar output is now projected to fall short of domestic demand, primarily due to weakening cane yields in key growing regions. Adding to the uncertainty is the looming risk of an El Niño event, which could disrupt the monsoon and further impact agricultural output. These factors have raised alarm over supply stability, leading authorities to reassess export commitments.
The government’s notification however read that, “This prohibition shall not apply to Sugar being exported to the EU and USA under CXL and TRQ quota, as per the prescribed procedure in the respective Public Notices.”
India’s export trajectory over the past few years highlights how sharply the policy stance has evolved. Exports rose steadily from 3.8 million tonnes in 2018–19 to a peak cap of 11 million tonnes in 2021–22, before being scaled down in subsequent years. Shipments were capped at 6 million tonnes in 2022–23, halted entirely in 2023–24, and then allowed in limited quantities in the following seasons. For 2025–26, the government had initially permitted exports of 1.5 million tonnes in November 2025, followed by an additional 0.5 million tonnes in February 2026, taking the total to 2 million tonnes, before the latest ban brought exports to a standstill once again.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
