Indian sugar stocks surged on Monday as tight domestic supplies and expectations of strong festival demand lifted shares across the sector.
Bajaj Hindusthan Sugar led gains with an advance of more than 11%, while Shree Renuka Sugars climbed 8.5% and Dwarikesh Sugar Industries jumped 10%. Dhampur Sugar Mills added 5.2%, Avadh Sugar & Energy rose 4.5%, and both Dalmia Bharat Sugar and Triveni Engineering and Industries gained 2.5%.
The rally follows a sharp increase in sugar prices driven by tighter-than-expected supplies. Delayed monsoon conditions and El Nino conditions have constrained near-term availability, tightening the market despite government measures aimed at curbing prices. India approved duty-free imports of 1 million metric tons of raw sugar to ease supply constraints, though most of the shipments are not expected to arrive until October.
The government has also implemented stockholding restrictions and other measures to stabilize prices, yet the market remains tight ahead of the peak festive season.
