Sugar Stocks Slide After Government Extends Export Ban Till September 2026
New Delhi, May 14: India’s sugar sector came under pressure on Thursday after the Centre prohibited most sugar exports till September 30, 2026, to ensure adequate domestic supply and keep retail prices under control.
Following the announcement, shares of major sugar companies declined by over 3 percent during early trade as investors reacted negatively to the policy move.
Sugar Stocks Under Pressure
Among the major losers, Balrampur Chini Mills fell 3.14 percent to Rs 531.65, while Dhampur Sugar Mills dropped 3.18 percent to Rs 148.88. Uttam Sugar Mills slipped 3.28 percent to Rs 245.10 and Dwarikesh Sugar Industries declined 3.64 percent to Rs 45.
Shares of Bajaj Hindusthan Sugar also traded lower by 2.14 percent at Rs 18.33, while Bannari Amman Sugars fell 1.38 percent to Rs 3,608.10.
Other sugar-linked stocks also remained weak. EID Parry India slipped 0.79 percent to Rs 799, while Triveni Engineering & Industries declined 0.80 percent to Rs 385.10. Shree Renuka Sugars edged slightly lower by 0.08 percent to Rs 24.84.
Why Did the Government Ban Sugar Exports?
The Directorate General of Foreign Trade (DGFT) revised the export policy for raw sugar, white sugar and refined sugar from “restricted” to “prohibited” with immediate effect.
According to the notification issued on May 13, exports under ITC (HS) Codes 1701 14 90 and 1701 99 90 will remain prohibited till September 30, 2026, or until further orders.
The government said the move aims to maintain sufficient sugar availability in the domestic market and prevent a rise in retail prices. India, being one of the world’s largest sugar producers and exporters, is prioritising domestic consumption amid concerns over supply and production levels.
Exceptions Under the Export Ban
Despite the restrictions, certain categories of exports will continue. Sugar shipments to the European Union and the United States under tariff quota arrangements such as CXL and TRQ quotas remain permitted.
Exports under the Advance Authorisation Scheme (AAS) under the Foreign Trade Policy 2023 will also continue without interruption.
Relief for Existing Shipments
The government clarified that consignments already in the export pipeline before the notification came into effect would still be allowed under specific conditions. These include cases where cargo loading had already started or customs documentation had been completed before the order was issued.
Market Outlook
The export ban is expected to impact sugar companies’ profitability in the near term as overseas sales opportunities shrink. However, the decision could help stabilise domestic sugar prices and ensure adequate supply in the local market over the coming months.
