Sugar Stocks Decline Following Government Export Ban

Centre Bans Sugar Exports Amid Efforts to Contain Domestic Prices and Manage Inflation

Shares of major sugar companies traded lower in early deals on Thursday after the Centre banned sugar exports with immediate effect till September 30, 2026, in a bid to contain domestic prices and manage inflation.

Among the stocks, Balrampur Chini Mills fell 3.13% to Rs 531.70, while Dhampur Sugar Mills declined 4.14% to Rs 147.40, emerging as the top loser in the pack. Triveni Engineering & Industries slipped 1.30% to Rs 383.15, while Shree Renuka Sugars was down 0.60% at Rs 24.71.

Dalmia Bharat Sugar and Industries traded 0.29% lower at Rs 365, while EID Parry India fell 1.40% to Rs 794.10. The notification issued by the Directorate General of Foreign Trade (DGFT) on May 13 stated that the export policy of Sugar (Raw Sugar, White Sugar and Refined Sugar) is amended from 'Restricted' to 'Prohibited' with immediate effect till September 30, 2026, or until further orders, whichever is earlier.

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The DGFT clarified that the restriction will not apply to exports to the European Union and the United States under the tariff rate quota scheme. The DGFT also allowed transitional relief for consignments already in the export pipeline, which includes shipments where loading had begun before the notification, cases where shipping bills had already been filed, and vessels had berthed or anchored at Indian ports with a rotation number.

The government further said sugar exports may still be permitted to other countries on food security grounds, subject to formal requests from their governments. Unless extended beyond September 30, 2026, the export policy for these sugar categories will automatically revert to 'Restricted'.