Sugar sector stocks witnessed sharp selling pressure on Thursday after the Central government prohibited most sugar exports until September 30, 2026, to maintain domestic supply and control retail prices.
The Directorate General of Foreign Trade (DGFT), operating under the Ministry of Commerce and Industry, revised the export status of raw sugar, white sugar, and refined sugar from “restricted” to “prohibited” with immediate effect. The decision applies to sugar exports under ITC (HS) Codes 1701 14 90 and 1701 99 90.
Following the announcement, shares of several leading sugar companies declined more than 3 percent during early trade. Balrampur Chini Mills fell 3.14 percent to Rs 531.65, while Dhampur Sugar Mills slipped 3.18 percent to Rs 148.88. Uttam Sugar Mills dropped 3.28 percent to Rs 245.10 and Dwarikesh Sugar Industries declined 3.64 percent to Rs 45.
Other sugar-related stocks also traded lower. Bajaj Hindusthan Sugar lost 2.14 percent, while Bannari Amman Sugars fell 1.38 percent. Shares of EID Parry India, Triveni Engineering & Industries, Shree Renuka Sugars, and Dalmia Bharat Sugar and Industries also traded in the red.
The government said the export restriction is aimed at ensuring sufficient domestic sugar availability and preventing a rise in local prices. India remains one of the world’s largest sugar producers and exporters, making the move significant for the global sugar trade.
However, the export ban will not apply to shipments made to the European Union and the United States under tariff quota arrangements such as CXL and TRQ quotas. Exports under the Advance Authorisation Scheme (AAS) will also continue under the Foreign Trade Policy 2023.
The Centre further clarified that consignments already in the export pipeline before the notification came into effect would still be permitted under specific conditions, including cases where customs clearance or vessel loading had already begun.