Shares of Dwarikesh Sugar Industries Ltd rose 2.7% to Rs 43.08 on Monday, November 10, after the central government permitted the export of 1.5 million tonnes of sugar for the 2025-26 sugar season, which started in October. The decision, announced by Food Minister Pralhad Joshi, comes as part of the government’s effort to balance domestic supply and export commitments amid a year of higher production.
The sugar industry had earlier requested permission to export 2 million tonnes, according to a CNBC-TV18 report dated October 29, citing surplus output. However, the government approved a slightly smaller quota to ensure domestic availability and price stability.
In a related move, the Food Ministry scrapped the 50% export duty on molasses, a by-product of sugar manufacturing. This step is expected to boost cash flow for sugar mills and enable faster payments to sugarcane farmers, improving liquidity across the sector.
Madhav Shriram, Director at DCM Shriram Industries, said sugar continues to be treated as a sensitive product under Free Trade Agreements (FTAs). He emphasized that India’s early achievement of 20% ethanol blending, five years ahead of target, has sparked international interest and could help absorb surplus sugar through expanded ethanol production.
Shares of Dwarikesh Sugar have declined nearly 8% over the past month, but the latest policy announcements could help revive investor sentiment across the sugar sector.
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