The Indian government has approved an additional export quota of 87,587 tonnes of sugar for the 2025–26 marketing year (October–September), bringing relief to sugar mills and boosting market sentiment.
Earlier, the government had already allowed 1.5 million tonnes of sugar exports for the season. In February, it had also allocated an extra 500,000 tonnes on a “non-swappable” basis to interested mills. However, mills applied for only 87,587 tonnes from this additional quota, which has now been fully approved. The remaining quota has lapsed.
Following the announcement, shares of sugar companies rose by up to 5% on Tuesday.
Export Deadline and Conditions
Mills must complete their allocated sugar exports by June 30, 2026. Those that manage to export at least 70% of their quota by this date will be allowed to export the remaining quantity until September 30, 2026.
If a mill fails to meet the 70% minimum requirement, the unutilized portion of its quota will be cancelled and may be reallocated to better-performing or interested mills. Additionally, the shortfall will be deducted from the mill’s future export quotas.
The government has made it clear that export deadlines will not be extended except in exceptional circumstances. Also, the allocated quotas cannot be transferred between mills.
Other Key Guidelines
- All grades of sugar can be exported within the allocated limit.
- Refineries can export refined sugar made from raw sugar supplied by mills under bilateral or tripartite agreements, provided it remains within the original mill’s quota.
- Supply of sugar to refineries in Special Economic Zones (SEZs) will also be treated as exports.
- Exports under the Advance Authorization Scheme (AAS) will continue as before.
Mills that violate stock holding limits set in March 2025 will not be eligible for export quotas this season. Any violation of guidelines may attract action under the Essential Commodities Act, 1955 and the Foreign Trade Act, 1992.
Mills are also required to report their monthly export data through the NSWS portal.
Export Performance So Far
According to recent industry data, India has exported about 315,000 tonnes of sugar between October and February, against the approved quota of 1.5 million tonnes for the current season.
Ethanol Push and Production Concerns
Rising crude oil prices have increased the focus on ethanol production, with higher demand expected from oil marketing companies for blending. Industry bodies have also lowered sugar production estimates due to reduced sugarcane output, particularly in Uttar Pradesh, Maharashtra, and Karnataka.
Sugar Stocks Gain
On the back of the export quota increase:
- EID Parry and Gayatri Sugars gained up to 2%
- Rajshree Sugars and Rana Sugars rose over 4%
- Dalmia Sugar saw a 1.69% increase
Overall, the announcement added momentum to sugar sector stocks, reflecting improved sentiment in the industry.
