Shares of Dhampur Sugar Mills Ltd climbed 3.7% to Rs 137.27 on Monday, November 10, after the central government approved the export of 1.5 million tonnes of sugar for the 2025-26 sugar season, beginning October. The move comes as part of the government’s broader policy to balance domestic availability and global competitiveness in the sugar sector.
According to Food Minister Pralhad Joshi, the export limit of 1.5 million tonnes is lower than the 2 million tonnes requested by the industry, as reported by CNBC-TV18 on October 29. The decision aims to manage surplus domestic production while ensuring price stability in the local market.
Additionally, the Food Ministry has scrapped the 50% export duty on molasses, a key by-product of sugar production, to boost liquidity for mills and help expedite sugarcane payments to farmers. This policy update is expected to improve cash flows and benefit companies such as Dhampur Sugar Mills, Dwarikesh Sugar Industries, and Balrampur Chini.
Madhav Shriram, Director at DCM Shriram Industries, noted that sugar remains a sensitive commodity and is treated separately in Free Trade Agreements (FTAs). He emphasized that Indian producers have faced export disadvantages in recent years and called for better trade access.
He further added that India’s early achievement of 20% ethanol blending—five years ahead of schedule—has drawn global attention, and the industry now aims to expand ethanol capacity to utilize surplus sugar stocks efficiently.
Shares of Dhampur Sugar have fallen around 7% in the past month, but the latest export and duty-relief announcements could provide near-term sentiment support.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.
