Sugar Stocks Rally After Govt Allows Additional Export Quota

Stocks of sugar manufacturers rallied on the bourses on Tuesday after the government allowed an additional export quota of the commodity.

Sugar stocks rose as much as 6 percent with Dalmia Bharat Sugar leading the charge. While the stock opened marginally higher at Rs 293.50, it later rose to Rs 314.25, up over 6.6 percent than the previous close of Rs 293.45 apiece. However, it pared some of the gains to trade at around Rs 300.

Other stocks gaining from the announcement were Uttam Sugar Mills, Shree Renuka Sugars, and Bajaj Hindusthan Sugar.

The stock of Uttar Sugar Mills opened 2.7 percent higher at Rs 195.40 apiece compared to its previous close of 190.15. It further rose to Rs 198.95, a premium of 4.6 percent from the previous close to come. Later, it came down a bit at around Rs 193.40, which is 1.7 percent higher than the previous close.

Similarly, the stock of Shree Renuka Sugars also climbed up 3.4 percent to hit its day’s high of 24.33 on Tuesday. Earlier, it opened marginally higher at Rs 23.61 apiece.

The stock of Bajaj Hindusthan Sugar also traded in green on Tuesday. While the stock opened marginally higher at Rs 15.62, it climbed to Rs 16.13, which is about 3.4 percent higher than the previous close of Rs 15.60.

The rally in sugar stocks was in contrast to the broader market indices Sensex and Nifty which are posting a muted show since the last two trading sessions.

The reason behind sugar stocks rally was government’s decision to allows an additional export quota of 87,587 tonnes for 2025-26. The government had earlier permitted exports of 1.5 million tonnes for the season, and in February allocated an extra 500,000 tonnes to willing mills on a non-swappable basis.

The mills will be required to export 70 percent of the quota by June 2026 to avoid penalties.