India Bans Sugar Exports: How Are Sugar Stocks Reacting To This Major Update?

Sugar Stocks In Focus: The shares of sugar stocks largely declined on Thursday, May 14, after the centre placed a  ban on sugar exports with immediate effect until September 30, 2026, or until further orders.

The shares of Balrampur Chini Mills fell as much as 5.67% on NSE to hit an intra-day low of Rs 517.75 apiece, while Bajaj Hindusthan Sugar shares declined 4.27% to hit an intra-day low of Rs 17.93 per share.

The other sugar stocks such as Dalmia Bharat Sugar, Shree Renuka Sugars, Bannari Amman Sugars, and  EID Parry also plummeted today.

This comes after the Ministry of Commerce & Industry announced the decision via a formal notification that shifts the export status for various sugar categories from the "restricted" list to the "prohibited" category.

The Directorate General of Foreign Trade (DGFT) also confirmed that the alteration affects raw sugar, white sugar, and refined sugar classified under ITC (HS) codes.

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This amendment comes to manage domestic supply and ensure food security over the next two years.

"The export policy of Sugar (Raw Sugar, White Sugar and Refined Sugar) under ITC (HS) Codes 1701 14 90 and 1701 99 90 is amended from 'Restricted' to 'Prohibited' with immediate effect till September 30, 2026, or until further orders, whichever is earlier," according to the official notification.

However, the prohibition is not applicable to sugar exported to the European Union (EU) and the United States under CXL and TRQ quotas, which will proceed according to the procedures established in relevant public notices.

Meanwhile, the notification also noted that if the date of prohibition is not extended beyond September 30, 2026, the export policy for these sugar categories will automatically revert back to the 'Restricted' status.