Sugar Stocks Under Pressure After Government Bans Exports Till September 30

Shares of sugar companies witnessed sharp selling pressure in morning trade on Thursday after the government prohibited sugar exports with immediate effect till September 30, 2026, or until further orders. The move triggered concerns over earnings and export opportunities for domestic sugar producers, leading to a broad-based decline across the sector.

Dwarikesh Sugar Emerges as Top Loser

Among the worst-hit stocks, Dwarikesh Sugar Industries fell as much as 4.93% to ₹44.40 on the NSE. The stock was trading at ₹45.03 at around 9:35 AM, down 3.6%. The counter touched an intraday low of ₹43.20 and a high of ₹46.10. Its 52-week range stands between ₹32.13 and ₹53.10.

Dhampur Sugar Mills declined 4.14% to ₹147.40, emerging as the top loser among major sugar counters. Balrampur Chini Mills dropped 3.13% to ₹531.70, while Uttam Sugar Mills slipped nearly 3% to ₹244.

Other Sugar Stocks Also Decline

Other sugar stocks also traded lower following the announcement. Bajaj Hindusthan Sugar fell to ₹18.35, while Dalmia Bharat Sugar and Industries declined to ₹359.7 and was later seen trading 0.29% lower at ₹365. MVK Agro Food Product dropped to ₹498, Magadh Sugar & Energy slipped to ₹486, KM Sugar Mills traded at ₹28.81, and Sakthi Sugars fell to ₹17.86.

Meanwhile, Triveni Engineering & Industries declined 1.30% to ₹383.15, Shree Renuka Sugars slipped 0.60% to ₹24.71, and EID Parry India fell 1.40% to ₹794.10.

DGFT Changes Sugar Export Policy

The Directorate General of Foreign Trade issued a notification on May 13 stating that the export policy for raw sugar, white sugar and refined sugar has been amended from “Restricted” to “Prohibited” with immediate effect till September 30, 2026, or until further orders.

Exemptions Under the New Notification

However, the government clarified that the restriction will not apply to sugar exports to the European Union and the United States under the tariff rate quota scheme. The notification also excludes shipments under the advance authorisation scheme, government-to-government exports, and consignments that are already in the physical export pipeline.

Relief for Existing Shipments

The transitional relief applies to shipments where loading had already started before the notification, cases where shipping bills had been filed and vessels had berthed or anchored at Indian ports with a rotation number, and consignments already handed over to customs authorities or custodians with electronic proof.

The ministry stated that approval for loading such vessels would be granted only after confirmation from the concerned port authority regarding berthing or anchoring before the notification came into effect.

Government Allows Exports on Food Security Grounds

The government further said sugar exports could still be allowed to other countries on food security grounds if formal requests are made by foreign governments. Unless extended beyond September 30, 2026, the export policy for sugar will automatically revert to the “Restricted” category.

India’s Sugar Industry in Focus

India is the world’s second-largest sugar producer, and the latest export curbs are aimed at ensuring adequate domestic supply and controlling food inflation.