Sugar stocks like Balrampur Chini and peers in focus today; Here's why

India's sugar stocks, Balrampur Chini Ltd., Dhampur Sugar Ltd., Dwarikesh Sugar Industries Ltd., and their peers will be in focus on Monday, November 10, after the government shared some updates with regards to Sugar exports.

The central government has allowed the export of 1.5 million tonnes of Sugar for the 2025-2026 sugar season, according to Food Minister Pralhad Joshi. India's sugar season begins in the month of October. The figure though, is lower than the 2 million tonnes requested by the industry, as per a CNBC-TV18 reported dated October 29.

The request was made by the industry to the central government due to the surplus domestic production this year.

Additionally, the Food Ministry has also decided to remove the 50% export duty on Molasses, which is a by-product of the Sugar production, a PTI report stated. The move is intended to help sugar mills improve liquidity and also pay sugarcane farmers faster.

Madhav Shriram, Director at DCM Shriram Industries, said sugar is treated as a sensitive product and negotiated separately in Free Trade Agreements (FTAs). He added that the industry has highlighted the disadvantages facing Indian sugar exports and urged the government to secure better market access.

Shriram also said India’s achievement of 20% ethanol blending five years ahead of schedule has generated global interest, and the sector is now looking to further expand ethanol blending to absorb surplus sugar.

Shares of Balrampur Chini are down 10% in the last one month, while those of Dhampur Sugar are down 7% during the same period. Shares of Mawana Sugar, Shree Renuka Sugar and Dwarikesh Sugar Industries are also down between 5% to 9% during the same period.