Sugar Stocks Rally Up To 13% As Prices Stay Firm; Balrampur Chini, Dwarikesh Among Top Gaineers

Sugar stocks remained in strong demand on Thursday, August 20, with several companies extending their gains as higher sugar prices and the government's latest move on bulk stockholding kept the sector in focus.

As of 1:10 PM, Balrampur Chini Mills was the biggest gainer among the stocks tracked, rising 13.37% to Rs 737.80. Dwarikesh Sugar Industries gained 12.63% to Rs 54.38, while Mawana Sugars climbed 10.08% to Rs 141.69.

Ponni Sugars (Erode) was up 9.07% at Rs 419, Bajaj Hindusthan Sugar gained 8.73% to Rs 22.16, and Indian Sucrose rose 8.58% to Rs 89.69. Dalmia Bharat Sugar and Industries advanced 7.25% to Rs 510.05, Magadh Sugar & Energy gained 6.32% to Rs 617.25, while Avadh Sugar & Energy was up 6.18% at Rs 789.90.

The buying comes as sugar prices have moved higher in both domestic and international markets, with investors assessing the impact of firm realisations on sugar producers.

The Ministry of Consumer Affairs, Food and Public Distribution said on August 19 that bulk sugar buyers will be subject to a 15-day stockholding limit from September 1 to November 30, 2026. The restriction applies to buyers using more than 10 metric tonnes of sugar a month as a raw material for production, consumption or other use.

The order does not apply to the central government, state governments, Union Territory administrations or local bodies. For determining eligibility, the government will consider average monthly consumption of more than 10 metric tonnes during the preceding one year, excluding the current month.

Sugar Prices Rally In Global And Domestic Markets

The move comes against a backdrop of sharply higher sugar prices. London Sugar futures have gained around 35% over the past six months, more than 22% over three months and over 15% in the past month.

London Sugar futures ended 0.50% higher at $542.20 per 50 tonnes on Wednesday, August 19, compared with $539.50 in the previous session.

Brazil's move towards higher ethanol-blended fuels is an important factor for the global sugar market. As the world's largest sugar producer increases ethanol production, more sugarcane can be diverted towards fuel production, leaving less sugar available for exports.

The global market is also dealing with volatile weather conditions, high demand and higher freight costs. Shipping disruptions linked to the West Asia crisis and the Strait of Hormuz have increased transportation costs, adding to pressure on commodity prices.

Domestic sugar prices have also risen sharply. Retail M30 grade crystal sugar in Delhi was priced at Rs 64 per kg on August 19, up more than 25% from Rs 51 per kg at the end of July.

On a year-to-date basis, Delhi retail sugar prices have climbed 42.22%, from Rs 45 per kg at the beginning of 2026 to the current level.

The rise in sugar prices has become particularly important for producers because higher commodity realisations can support their margins. At the same time, companies that use sugar as a raw material could face higher input costs.

Sugar Import Duty Cut In Focus

The government is also reportedly considering reducing or removing the existing 100% import duty on sugar to ease supply pressure and contain domestic prices.

A Business Standard report said India is reportedly planning to import around 1 million tonnes of raw sugar at zero import duty, nearly 10 years after its last move to ease sugar imports.

Any increase in imports could add to domestic availability and put pressure on sugar prices if additional supplies enter the market. For sugar producers, this could limit some of the upside from the current rally in realisations.

For investors, the focus will remain on the direction of domestic and global sugar prices, government measures on imports, ethanol production and the impact of higher sugar prices on the margins of producers.

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