Sugar Stocks Rally Up To 12% As Domestic Sugar Prices Surge Amid Supply Concerns
Add Preferred News Source
Sugar stocks surged as much as 12% as domestic prices jumped 21% on supply concerns, with reports suggesting the government may cut import duty ahead of festive-season demand.
Shares of sugar companies climbed sharply on Wednesday, August 19, with several counters gaining as much as 12%, as investors bet on stronger sugar realisations amid a sharp rise in domestic prices and concerns over supplies. Dwarikesh Sugar Industries led the rally, rising nearly 12% on the BSE, while other names including Bajaj Hindusthan Sugar, Shree Renuka Sugars, Dhampur Sugar Mills and Balrampur Chini Mills also posted gains during the session.
Sugar Stocks Share Price
Dwarikesh Sugar Industries climbed the most among peers, advancing 11.88% to Rs 50 on the BSE. Bajaj Hindusthan Sugar rose 10.90% to touch a high of Rs 20.65 a share, while Shree Renuka Sugars gained 8.84% to Rs 25.36 apiece. Dhampur Sugar Mills moved up 5.75% to Rs 178.40, Simbhaoli Sugars added 4.16% to Rs 7.52, and Balrampur Chini Mills gained 1.14% to Rs 659.60.
Why Are Sugar Stocks Rising Today?
The rally comes amid a sharp rise in domestic sugar prices through August, driven by concerns over supplies ahead of the upcoming festival season. Spot data available with NCDEX showed Kolhapur sugar prices rising 21% to Rs 5,250 on August 18 from Rs 4,350 on July 31.
The rise in sugar prices has raised concerns over domestic availability ahead of the 2026-27 crushing season. The government is also considering measures to ease supply pressures, including limited duty-free imports, lower stockholding limits for bulk traders and changes to monthly sales quotas for mills, according to a Reuters report.
India's sugar demand typically rises between August and November as consumption increases during festivals including Ganesh Chaturthi, Dussehra and Diwali. The government is considering allowing mills to import up to 1 million tonnes of sugar duty-free before the end of October, while port-based refineries could also be asked to divert some stocks to the domestic market.
Global sugar prices have also moved higher. Raw sugar futures in New York rose 4.3% to 17.59 cents a pound, their highest level since May 2025, while prices have gained 18% in August so far, according to a Business Today report. India is the world's second-largest sugar producer.
Also Read - Gold, Silver Prices Fall on MCX as Crude Oil Rally Fuels US Fed Rate Hike Bets
This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer
Rochelle Britto has spent 8+ years decoding India's markets, businesses, and consumer economy, reporting for ET Prime and Times Internet along the way, covering the stories behind the numbers.
A Mumbai native and perpetual planner of the next holiday, she stays far, far away from the eternal question, “Where are we going next?” When she's not chasing headlines, she's chasing new cultures, open roads, and a bit of quiet in nature.
