Sugar Stocks Slide as Government Bans Exports Till September 30

Shares of major sugar companies tumbled in Thursday’s trading session after the government imposed a ban on sugar exports until September 30, triggering concerns over revenue and inventory pressure for the industry.

ur Chini Mills, one of the largest sugar producers in the country, led the decline, falling nearly 4% during the session. Other sugar stocks followed suit, reflecting broad selling pressure across the sector. at Sugar and Industries traded 0.29% lower at ₹365, while EID Parry (India) declined 1.40% to ₹794.10. Several other listed sugar companies also witnessed losses ranging from 1% to 3.5%. Reason Behind the Ban The export ban is aimed at ensuring adequate domestic availability and cooling sugar prices ahead of the festive season. Industry sources indicate that the decision comes amid expectations of a normal to slightly lower sugarcane output in the upcoming season and strong domestic demand. The government is prioritising domestic supply security, especially with retail sugar prices remaining elevated in several parts of the country. This move effectively halts shipments that were expected to provide much-needed forex earnings and help mills clear excess inventory. In the previous season, India had allowed limited exports under quota systems, but the complete ban till end-September is seen as more stringent.