Indian sugar stocks jumped on Monday as domestic prices strengthened and supply tightness ahead of the festive season boosted investor interest, even as authorities moved to temper price growth.
Shares of leading producers advanced sharply, with Bajaj Hindusthan Sugar rising 11% and Dwarikesh Sugar Industries surging 10%. Shree Renuka Sugars climbed 8.5%, while Dhampur Sugar Mills gained 5.2%. Smaller gains were seen in Dalmia Bharat Sugar and Triveni Engineering and Industries, each up 2.5%. The rally followed a government decision to allow duty-free imports of 1 million metric tons of raw sugar to ease domestic supply constraints.
However, the imported sugar is not expected to arrive before October, leaving short-term availability tight. The delay reflects the impact of delayed monsoon conditions and El Niño, which have constrained domestic output. The government has also imposed stock limits and other measures to curb prices, yet the sector’s stocks continued to rise on expectations of strong festive demand.
The surge in sugar stocks underscores the tension between government efforts to stabilize prices and market expectations of sustained demand during the upcoming festival season.
