Sugar stocks rally up to 8% tighter stock limits

Meanwhile, the Economic Times daily newspaper is available online now.

Key points

• Top Trending Stocks: SBI Share Cost, Axis Bank Share Rate, HDFC Bank Share Cost, Infosys Share Rate, Wipro Share Cost, NTPC Share Rate.
• While Shree Renuka Sugars and Dhampur Sugar Mills gained 6-7%, bajaj Hindusthan Sugar shares rose around 8% to Rs 22.
• Bajaj hindusthan sugareid parry indiasugar stocksBajaj Hindusthan SugarBalrampur Chini Millssugar pricessugar stock limitsShree Renuka SugarsDhampur Sugar MillsEID Parry India.
• Sugar stocks Bajaj Hindusthan Sugar, Balrampur Chini, others rally up to 8% after govt tightens stock limits.
• Authorities are weighing aims to lower or scrap the 100% tax on inbound shipments in a bid to boost local supplies, the report noted, citing sources.

Sugar stocks Bajaj Hindusthan Sugar, Balrampur Chini, others rally up to 8% after govt tightens stock limits. ETMarkets.comLast Updated: Aug 20, 2026, 11: 20: 00 AM IST.

Sugar stocks rallied up to 8% after the administration tightened inventory limits for dealers against the backdrop of record-high sugar rates. While Balrampur Chini and other stocks additionally advanced, bajaj Hindusthan Sugar led gains. Reservations over domestic and Brazilian supply, rising festive-season demand and a feasible cut in import duties have further backed costs.

Sugar stocks rallied up to 8% on Thursday after the administration tightened inventory limits, barring dealers handling more than 10 metric tonnes of sugar per month from holding stocks for over 15 days. While Shree Renuka Sugars and Dhampur Sugar Mills gained 6-7%, bajaj Hindusthan Sugar shares rose around 8% to Rs 22. While EID Parry India advanced almost 2%, balrampur Chini Mills climbed over 3%.

India's sugar demand typically rises between August and November as the country celebrates festivals such as Ganesh Chaturthi, Dussehra and Diwali, driving demand for sweets, biscuits and other confectionery products. Manufacturers of these products additionally build inventories ahead of the festive season, further supporting sugar demand. Last month, the administration directed dealers to hold sugar stocks for no more than 30 days to bolster supplies. Despite the move, sugar rates have risen 10% over the past month to record highs, with analysts expecting costs to remain elevated for at least the next three months. Meanwhile, patchy rains and dry weather conditions have affected sugarcane output. Since the crop requires substantial water for irrigation, reservations over supply have went on to upward pressure on rates. India tightens sugar stock limits to tame record rates Live Events.

Notably, the worsening supply outlook in Brazil, the world's largest sugar producer, has additionally triggered a sharp rally in sugar costs. The country has cautioned of a delay in the harvest due to adverse weather conditions. Adding to the uncertainty, Brazil has suspended its bi-weekly harvest and production reports, limiting visibility into the country's supply outlook. Meanwhile, a shift towards ethanol is adding to reservations over a potential sugar supply crunch. In June, 58% of Brazil's cane juice was diverted towards ethanol. It is projected to offer better profitability than sugar. Brazil additionally raised its mandatory ethanol blending target to 32% in July from 30% in June, significantly above the 25-27% levels seen just months earlier. India to cut sugar import duty?

India, the world's second-largest producer of sugar, is considering reducing its import duty on the commodity to support curb domestic costs that lately climbed to a record, Bloomberg noted. Authorities are weighing aims to lower or scrap the 100% tax on inbound shipments in a bid to boost local supplies, the report noted, citing sources. This come just before a seasonal surge in sugar demand for the festival season, adding to the incentive to rein in rising rates. Why is market rising today? Sensex rallies 500 points, Nifty tops 24, 200. 5 key factors behind market rebound (With inputs from agencies) (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times).

Power shift, a déjà vu: Air India could be new CEO's toughest flight yet.

ET Prime special series: Bigger or Better? Bharat Electronics' 2013 to 2026 journey – Part 2.

For now, sugar stocks rally up to 8% tighter stock limits remains the part of the story worth watching, and further updates are likely as more details are confirmed.