Following the event, Balrampur Chini Mills declined 4.5% to their day’s low of Rs 525 on the BSE, whereas Dhampur was down over 4% to Rs 147.55 per share. Dalmia Bharat Sugar and Industries slipped over 3% to Rs 354, whereas Shree Renuka and EID Parry have been down over 2% every.
The restriction applies to all types of sugar exports, together with uncooked, white and refined sugar, and can keep in place till September 30 or till additional orders. Sugar merchandise categorized underneath ITC (HS) codes 1701 14 90 and 1701 99 90 are additionally coated underneath the ban.
The event comes at a time when India, the world’s second-largest sugar exporter after Brazil, had permitted mills to export 1.59 million metric tonnes of sugar on expectations that manufacturing would exceed home demand. Now, sugar manufacturing is anticipated to stay beneath consumption for a second straight yr as cane yields weaken throughout key producing areas.
The federal government mentioned exports of each uncooked and white sugar could be prohibited, though shipments already within the export pipeline will probably be allowed underneath sure situations. Consignments the place loading had began earlier than publication within the Official Gazette will nonetheless be permitted.
The notification additional acknowledged that if the prohibition just isn’t prolonged past September 30, the export coverage will routinely revert to the earlier “restricted” class.
Exports to the European Union and the US underneath tariff charge quota agreements will proceed, topic to prescribed public discover procedures. Shipments made underneath the Advance Authorisation Scheme may also stay exempt from the restriction.The newest transfer comes a day after the federal government elevated import responsibility on gold and different treasured metals as a part of efforts to curb non-essential imports and safeguard overseas change reserves. Authorities are additionally taking steps to make sure power availability and preserve important provides within the nation.
India is estimated to provide round 275 lakh tonnes of sugar within the 2025-26 season, which runs from October to September. Together with the opening inventory of practically 50 lakh tonnes, whole sugar availability is anticipated to face at about 325 lakh tonnes.
Home demand, in the meantime, is projected at round 280 lakh tonnes, leaving closing shares at roughly 45 lakh tonnes. That may mark the bottom inventory degree since 2016-17, when inventories had fallen to just about 39.4 lakh tonnes.
The federal government can also be involved in regards to the subsequent sugar season, with manufacturing in 2026-27 prone to come underneath strain as a result of weaker rainfall linked to El Niño and potential fertiliser shortages arising from the Center East disaster.
(Disclaimer: Suggestions, ideas, views and opinions given by the specialists are their very own. These don’t symbolize the views of The Financial Instances)
