Sugar stocks up by 10% today: Here we decode why
What's the story
Sugar stocks witnessed a major boost today, with shares jumping up to 10% in early trade. The surge comes after the Indian government approved an export quota of 1.5 million tons (MT) of sugar for the ongoing 2025-26 season, which began in October. The move is expected to benefit several sugar companies such as SBEC Sugar, Dhampur Sugar Mills, and Balrampur Chini Mills.
Market impact
SBEC Sugar hits upper circuit limit
The Union Food Ministry's decision to allow a 1.5MT sugar export quota for the current season has been welcomed by several sugar companies. SBEC Sugar's shares hit the upper circuit limit of 10%, while other firms such as Dhampur Sugar Mills, Balrampur Chini Mills, Bajaj Hindusthan Sugar, and Dalmia Bharat Sugar & Industries saw their stocks rise by 3-6%.
Export trends
India exported about 800,000 tons of sugar last season
During the 2024-25 sugar season, India exported about 800,000 tons of sugar against an allocation of 1MT. The government is now considering allowing more exports due to surplus stocks as diversion for ethanol production fell short of expectations. Sugar mills diverted only 3.4MT for ethanol manufacturing in the last season, leading to high opening stocks for this one.
Production forecast
Sugar production to reach 34MT in the upcoming season
For the 2025-26 season, sugar production is expected to hit 34MT against an annual domestic demand of 28.5MT. The government hopes that this surplus will help boost exports further. The decision to approve a higher export quota comes as part of efforts by the Indian government to protect the interests of sugarcane farmers across India.