Balrampur Chini, Dalmia Bharat: Sugar stocks rally as government allows 1.5 MT sugar exports for 2025-26; other details to know

The Union Food Ministry has also decided to remove the 50% export duty on molasses, Joshi said in a letter dated November 7 to Karnataka Chief Minister Siddaramaiah, PTI reported.

In the early trade, Balrampur Chini Mills was trading 4.21% higher at ₹450.75 on the NSE, while Shree Renuka Sugars was up 3.52% at ₹28.81. Triveni Engineering and Industries was trading over 1% up at ₹364.85, while Dalmia Bharat Sugar and Industries was trading over 3% higher at ₹328.

Bajaj Hindusthan Sugar was also up nearly 3% at ₹21.74.

The export decision was communicated to the chief minister while listing out the steps taken by the central government to protect the interest of sugarcane farmers in the country.

"For the current sugar season also, the central government has decided to allow the export of 15 lakh tonnes of sugar, and the 50% export duty on molasses has been removed," Joshi said.

The export allocation is lower than the 2 MT demanded by the industry.

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 that the government was considering allowing sugar exports due to the accumulation of surplus stocks, as the diversion of the sweetener for ethanol production fell short of expectations.

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 production for 2025-26 is expected to reach 34 MT against the annual domestic demand of 28.5 MT, Chopra said.

India's sugar production to rise 16% in 2025-26

India's sugar production is estimated to rise 16% to 343.5 lakh tonnes in the current 2025-26 marketing year that started in September, mainly on higher output in Maharashtra, according to industry body ISMA.

The gross sugar production stood at 296.10 lakh tonnes in the 2024-25 marketing year (October-September).

Sugar production in Maharashtra is expected to rise to 130 lakh tonnes from 93.51 lakh tonnes in 2024-25, on account of increased area and productivity.

In a statement on Tuesday, the Indian Sugar & Bio-Energy Manufacturers Association (ISMA) said the net sugar production (after diversion towards ethanol production) is estimated to rise to 309.5 lakh tonnes from 261.08 lakh tonnes.