The Government’s decision to allow sugar mills to export 15 lakh tons (LMT) sugar in the new season of 2025-26, has lifted the mood of the industry. The news had a positive impact on the sugar stocks as well. The stocks have extended their gains into Tuesday as well, after having a positive run on Monday, when Sensex and Nifty opened after the announcement.
The sugar industry has welcomed the news.
Speaking to ChiniMandi, Atul Chaturvedi, Executive Chairman of Shree Renuka Sugars, said that the announcement of 15 LMT export quota is a step in the right direction and will certainly help to ensure domestic sugar values do not collapse big time during the peak crushing period.
“However, export quota alone will not help, and it’s important that sugar MSP and sugar ethanol prices are jacked up to help the industry come out of the quagmire. International sugar prices are under pressure, and this announcement may put additional pressure on international prices,” Chaturvedi said.
He also added that he is not sure how much sugar will be exported, as the price parity is currently not favourable for exports from India.
B B Thombare, President of West India Sugar Mills Association (WISMA), applauded the Government’s decision to allow sugar export. He said, “The export decision is a good decision. As we are aware that the country will have a bumper crop, so exports will help absorb the surplus sugar, and unlock its value”.
However, he said that as the season progresses and new sugar is added, the Government should allow more sugar exports. “15 LMT sugar export is good, however, we expect the Government to allow export to the tune of 20 LMT to 20.5 LMT, this will ensure domestic prices remain steady and we close the season with sufficient stock needed for the first three months of the new season”.
