India Clears 1.5 MT Sugar Exports, Scraps Molasses Duty

Overview

• Food Minister Pralhad Joshi confirmed approval to export 1.5 million tonnes of sugar for 2025–26 and the removal of the 50% export duty on molasses.
• Sugar shares jumped in early trade, with several stocks rising up to 10% and names like Balrampur Chini, Dhampur, Dwarikesh, Bajaj Hindusthan and Dalmia Bharat gaining.
• Officials project sugar output at about 34 million tonnes this season against domestic demand near 28.5 million tonnes, indicating a sizable surplus.
• Industry participants had sought roughly 2 million tonnes of export allowance, leaving the cleared quota below their request.
• Lower diversion to ethanol last season at 3.4 million tonnes versus a 4.5 million tonne target and exports of about 0.8 million tonnes set up high opening stocks, with the policy framed as aiding mill liquidity and farmer payments.