Shares of Shree Renuka Sugars Ltd gained 3.56% to Rs 28.82 on Monday, November 10, after the central government announced the export approval of 1.5 million tonnes of sugar for the 2025-26 season, which began in October.
The decision, announced by Food Minister Pralhad Joshi, comes as the government seeks to balance domestic availability and export demand amid surplus production this year. While the industry had requested permission to export 2 million tonnes, the approved quota was lower, according to a CNBC-TV18 report dated October 29.
In a major relief for the industry, the Food Ministry also removed the 50% export duty on molasses, a by-product of sugar manufacturing. The move aims to enhance liquidity for mills and facilitate timely payments to sugarcane farmers, a long-standing challenge for sugar producers.
Madhav Shriram, Director at DCM Shriram Industries, noted that sugar is considered a sensitive commodity and is treated separately under Free Trade Agreements (FTAs). He emphasized the need for India to secure better global market access and highlighted that India’s 20% ethanol blending milestone, achieved five years ahead of schedule, has drawn global recognition.
Shares of Shree Renuka Sugars have declined nearly 6% over the past month, but the recent policy developments may improve sector sentiment and support prices in the near term.
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