India’s sugar stocks rose by more than 4% on Monday, November 10, following fresh government updates regarding sugar export policies. The rally followed the government’s indication that it may take new measures or provide clarity on export permissions for the season, boosting investor sentiment in the sector.
Here are the key factors for the Rally
Centre Approves Export of 1.5 Million Tonnes of Sugar for 2025-26 Season
The central government has approved the export of 1.5 million tonnes of sugar for the 2025-26 sugar season, Food Minister Pralhad Joshi announced. India’s sugar season commences in October each year. The approved export quantity, however, is lower than the 2 million tonnes sought by the industry, according to a CNBC-TV18 report dated October 29.
The request was made by the industry to the central government due to the surplus domestic production this year.
Government Removes 50% Molasses Export Duty to Support Sugar Mills
The Food Ministry has also decided to remove the 50% export duty on molasses, a by-product of sugar production, according to a PTI report. This move aims to help sugar mills improve liquidity and enable faster payments to sugarcane farmers.
Indian Sugar Industry Eyes Better Export Access Amid Ethanol Expansion
Madhav Shriram, Director at DCM Shriram Industries, stated that sugar is considered a sensitive commodity and is negotiated separately in Free Trade Agreements (FTAs). He added that the industry has highlighted the challenges facing Indian sugar exports and has urged the government to secure improved market access.
Shriram also noted that India’s achievement of 20% ethanol blending, reached five years ahead of schedule, has attracted global attention. The sector is now looking to further expand ethanol blending as a way to utilize surplus sugar.
Here is the list of stocks in focus
Balrampur Chini Ltd
Balrampur Chini Mills Ltd (BCML) is one of India’s largest integrated sugar manufacturers, incorporated in 1975. Besides sugar production, its allied businesses include the manufacturing of ethanol and power cogeneration. The company operates 10 sugar manufacturing facilities in Uttar Pradesh and is focused on sustainable practices.
With a market capitalization of 9,030.93 Crores on Monday, the shares of Balrampur Chini Ltd jumped upto 5.1 percent, reaching a high of Rs. 455.25 compared to its previous close of Rs. 432.90.
Dhampur Sugar Mills Ltd
Dhampur Sugar Ltd. is an Indian company founded in 1933 that is primarily engaged in the manufacturing and selling of sugar, ethanol, chemicals, and co-generated power. As an integrated sugar mill, it utilizes by-products like molasses and bagasse to produce other goods, helping to de-risk its business.
With a market capitalization of 878.43 Crores on Monday, the shares of Dhampur Sugar Mills Ltd jumped upto 6.4 percent, reaching a high of Rs. 140.85 compared to its previous close of Rs. 132.35.
Dwarikesh Sugar Industries Ltd
Dwarikesh Sugar Industries Ltd is an Indian company primarily engaged in manufacturing sugar, with diversified operations in producing industrial alcohol (ethanol) and co-generating power from bagasse. The company has a total sugarcane crushing capacity of 21,500 tons per day across its three manufacturing units in Uttar Pradesh.
With a market capitalization of 796.61 Crores on Monday, the shares of Dwarikesh Sugar Industries Ltd jumped upto 4.4 percent, reaching a high of Rs. 43.75 compared to its previous close of Rs. 41.88.
Shree Renuka Sugars Ltd
Shree Renuka Sugars Ltd. is a global agribusiness and bio-energy company that is one of India’s largest sugar and ethanol producers. The company operates across the entire sugar value chain, with businesses in sugar milling, refining, and the production of green energy (ethanol and cogeneration).
With a market capitalization of 6,108.77 Crores on Monday, the shares of Shree Renuka Sugars Ltd jumped upto 6.6 percent, reaching a high of Rs. 29.69 compared to its previous close of Rs. 27.84.
Written by Sridhar J
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
