Sugar Stocks Surge Up to 5% as Government Approves Additional Export Quota

Sugar Stocks Rise on Export Quota Approval

Key Highlights

• The Indian government has approved an additional 87,587 tonnes of sugar export quota for the 2025-26 marketing year.
• The approved quota brings the total export quota to 1,587,187 tonnes (1.5 million tonnes + 87,587 tonnes).
• Sugar stocks such as Dalmia Bharat Sugar, Bajaj Hindusthan Sugar, Shree Renuka Sugars, and Balrampur Chini Mills rose up to 5% on March 17.

Export Quota Details

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• The government had earlier permitted exports of 1.5 million tonnes for the season and allocated an extra 500,000 tonnes to willing mills on a non-swappable basis.
• Mills had until February to apply for portions of the additional quota, with only 87,587 tonnes requested and approved.
• The remaining 412,413 tonnes (500,000 - 87,587) lapsed, according to the ministry.

Export Requirements and Penalties

• Mills must export the allocated sugar by June 30, 2026, with those exporting at least 70% of their quota allowed to ship the balance by September 30, 2026.
• Failure to meet the 70% threshold will result in the unutilised quantity lapsing, with potential reallocation to higher-performing or willing mills.
• Mills failing to export the mandated 70% will face deductions from future export quotas equivalent to the shortfall below the threshold.

Export Modalities

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• All grades of sugar may be exported up to the allocated limit.
• Refineries exporting refined sugar from raw sugar supplied by mills can do so under bi- or tri-partite agreements, provided quantities remain within the original mill's quota.
• Exports under the Advance Authorisation Scheme continue as before.

Compliance and Enforcement

• Mills must report monthly exports via the minister's NSWS portal.
• Violations of guidelines may trigger action under the Essential Commodities Act, 1955, and Foreign Trade (Development and Regulation) Act, 1992.
• The ministry retains authority to modify export modalities as needed.