Sugar stocks gain after govt clears additional export quota

Shares of Rajshree Sugars & Chemicals surged 7.07%, Praj Industries added 4.59%, Uttam Sugar Mills climbed 2.24%, Dwarikesh Sugar Industries advanced 2.02%, Dalmia Bharat Sugar and Industries moved up 1.83%, Rana Sugars rose 1.77%, Dhampur Sugar Mills gained 1.34%, and Bajaj Hindusthan Sugar rose 0.83%.

The additional quota comes after the government had earlier allowed exports of 1.5 million tonnes for the season and subsequently offered an extra 500,000 tonnes in February on a non-swappable basis. However, mills applied for only 87,587 tonnes from this additional window, with the remaining quantity lapsing.

According to the ministry, mills must export the allocated quantity by 30 June 2026. Those achieving at least 70% of their quota by the deadline will be permitted to ship the balance by September 30, while those falling short will see the unutilised portion lapse and face deductions in future allocations.

India has exported around 315,000 tonnes of sugar between October and February in the ongoing 2025-26 season, significantly below the permitted quota, reflecting cautious participation by mills amid evolving market dynamics.

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