Shares of Balrampur Chini Mills Ltd climbed 3.9% to Rs 449.50 on Monday, November 10, following the government’s approval for the export of 1.5 million tonnes of sugar for the 2025-26 sugar season, which began in October.
The announcement, made by Food Minister Pralhad Joshi, allows mills to export a portion of the surplus output, although the sanctioned quantity is lower than the 2 million tonnes requested by the industry, as reported by CNBC-TV18 on October 29. The move aims to maintain domestic supply while giving sugar companies a chance to clear excess inventory.
In a separate update, the Food Ministry removed the 50% export duty on molasses, a key by-product of sugar production, in an effort to improve mill liquidity and expedite sugarcane payments to farmers. This step is seen as a positive move for companies like Balrampur Chini Mills, Dhampur Sugar, and Dwarikesh Sugar Industries.
Madhav Shriram, Director at DCM Shriram Industries, said sugar remains a sensitive commodity and is treated independently under Free Trade Agreements (FTAs). He noted that the industry continues to push for better global market access and highlighted India’s achievement of 20% ethanol blending five years ahead of schedule, which has positioned the country as a major player in biofuel development.
Shares of Balrampur Chini Mills have declined 10% over the past month, but the recent policy decisions may provide near-term support to the stock.
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