Sugar Stocks In Focus As Centre Tightens Inventory Rules Ahead Of Festive Season; Balrampur Chini, EID Parry, Triveni Engineering Fall Up To 2.5%

Sugar stocks came under pressure on Friday after the Centre introduced tighter rules on the storage and movement of sugar, with Balrampur Chini, EID Parry, Triveni Engineering, Shree Renuka Sugars, Bajaj Hindusthan, Dalmia Sugar, Dhampur Sugar, Sakthi Sugars and Rana Sugar among the stocks trading lower.

The latest measures require mills to dispatch sugar sold to dealers within seven days and, from September 15, sell only to dealers registered on the Department of Food and Public Distribution (DFPD) portal. The rules will remain in force until November 30.

Mills will also have to maintain records of sales and dispatches. They have been asked to submit details of opening stock, production, dispatch, release and closing stock for the first fortnight of September by September 18 through the prescribed reporting mechanism.

Centre Tightens Sugar Stock And Sale Rules

The latest directive follows a series of measures aimed at keeping a closer check on sugar inventories. Earlier this month, the government reduced the stock limit for dealers to 2,000 quintals from 4,000 quintals, with the revised limit taking effect from September 15.

Dealers will also not be permitted to hold sugar for more than 30 days from the date of receipt. The government had earlier directed businesses consuming more than 10 metric tonnes of sugar a month to restrict their inventories to 15 days.

At the same time, the Centre has taken steps to improve domestic availability. It allowed duty-free imports of 10 lakh tonnes of raw sugar under a tariff rate quota until October 31, as the government prepares for higher demand during the festive season.

Sugar Stocks Trade Lower

The fresh restrictions put sugar companies under focus on Friday, with most of the sector's key stocks trading below their previous closing levels. By mid day, sugar stocks were down by as much as 2.5%, compared with a 0.55% decline in the Nifty50.

Balrampur Chini, EID Parry and Triveni Engineering were among the stocks in focus, along with Shree Renuka Sugars, Bajaj Hindusthan, Dalmia Sugar, Dhampur Sugar, Sakthi Sugars and Rana Sugar.

The measures come ahead of the new crushing season and at a time when the government is closely monitoring sugar availability and inventories. For sugar companies, changes in stock limits, import policy and domestic supply rules remain key factors for the sector as festive demand approaches.

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