Triveni Engineering, Dhampur Sugar, EID Parry: Why sugar stocks are rising today

The country's sugar mills diverted only 3.4 million tonnes of sugar for ethanol manufacturing in 2024-25, well below the projected 4.5 million tonnes, Union Food Secretary Sanjeev Chopra told PTI in an interview.

This has resulted in high opening stocks for the current 2025-26 marketing year that runs from October to September, the official said.

Sugar production for 2025-26 is expected to reach 34 million tonnes against the annual domestic demand of 28.5 million tonnes, Chopra added.

When asked about the industry's demands to allow exports as well as higher diversion for ethanol, Chopra said, "We are definitely having a surplus of sugar... We are considering allowing exports."

Chopra hinted that a decision might be taken soon, as the government would like to give a longer window for the industry to plan for exports. A committee of ministers is likely to meet next week to decide on the issue.

India exported about 8,00,000 tonnes of sugar against an allocation of 1 million tonnes during the 2024-25 marketing year.

How sugar stocks are performing

At the time of writing this article, Triveni Engineering and Industries was trading over 2% higher at ₹359.40 on the NSE, while shares of E I D-Parry (India) Ltd were trading 1.63% higher at ₹1,087.80 apiece. Dhampur Sugar Mills was up over 1% at ₹137.40. Uttam Sugar Mills was also trading 1% higher at ₹253.

Shree Renuka Sugars was trading 1.57% higher at ₹29.73, and Dwarikesh Sugar Industries was up 1.5% at ₹45.20 on the NSE. Balrampur Chini Mills was up 0.6% at ₹472.10.

Sugar export feasibility

On the feasibility of sugar exports, the secretary said, "Currently, international prices are not too favourable for refined sugar. There may be some export parity possible for raw sugar."

The current export price of sugar is lower than the ex-mill price. "They will probably export at the right time; maybe raw sugar can get exported because that has export parity," Chopra added.

For refined sugar, the global price stands at ₹3,829 per quintal as against the average ex-mill price of ₹3,885 per quintal.

Ethanol production

Regarding the diversion of sugar for ethanol, Chopra questioned the industry's demand for higher quantities when mills failed to utilise the allocated 4.5 million tonnes in the previous season, despite the removal of all restrictions.

Nevertheless, the secretary said the matter pertains to the Ministry of Petroleum and Natural Gas, which could be considering their demand.

"We were earlier estimating a diversion of 4.5 million tonnes, but it was 3.4 million tonnes only, and we are left with a surplus," he said.

The sugar industry offered to supply 471 crore litres of ethanol from molasses in the 2024-25 ethanol supply year ending in October but only delivered 289 crore litres, he said.

"We removed all restrictions for ethanol production from molasses. But maize has got the lion's share," Chopra said.

Of the total estimated supply of 1,048 crore litres for the season, 289 crore litres came from molasses (28%), 478 crore litres from maize (45%), and 235 crore litres from rice (22%), Chopra added.

"Our priority of utilisation has been first the domestic consumption, then diversion for ethanol, and the balance goes for exports," Chopra said.