Shares of major sugar producers in India, including Dhampur Sugar Mills and Dalmia Bharat Sugar & Industries, fell by up to 7% on Thursday following the government's ban on sugar exports. This decision was made to stabilize domestic prices amid rising sugar costs and lower sugarcane yields in Maharashtra and Karnataka, exacerbated by potential crop shrinkage due to El Nino effects. Despite the immediate decline in stock prices, analysts like Gaurav Sharma from Globe Capital Market remain optimistic about the sector's medium- to long-term potential. They note that while the export ban poses a near-term challenge, many sugar mills are expanding their production capacities to support the government's 20% ethanol blending targets, which could mitigate some negative impacts from the ban. In 2026, stock performance among sugar companies has been mixed, with some firms seeing gains of 5-31% while others have experienced declines of 2-23%.