Relief steps for sugar prices drag these stocks down

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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.
• Balrampur Chini Mills, Dhampur Sugar Mills and Bajaj Hindusthan Sugar shares fell 5% each on Friday, a day after hitting fresh 52-week highs.
• Balrampur chini millsshree renuka sugarseid parry indiasugar stockssugar importsBalrampur Chini MillsDhampur Sugar MillsBajaj Hindusthan Sugarsugar rates.
• Sugar stocks Balrampur Chini, Dhampur Sugar, others tumble up to 5% as govt allows duty-free imports.
• Sugar stocks fell sharply on Friday after the administration allowed duty-free imports of 1 million tonnes of raw sugar until October 31.

Sugar stocks Balrampur Chini, Dhampur Sugar, others tumble up to 5% as govt allows duty-free imports. ETMarkets.comLast Updated: Aug 21, 2026, 09: 54: 00 AM IST.

Sugar stocks fell sharply on Friday after the administration allowed duty-free imports of 1 million tonnes of raw sugar until October 31. Balrampur Chini Mills, Dhampur Sugar Mills and Bajaj Hindusthan Sugar declined sharply, reversing recent gains driven by rising sugar rates and tightening supply ahead of the festive season.

As rates surged ahead of the festive season, shares of sugar firms tumbled on Friday after the administration allowed duty-free imports of 1 million metric tonnes of raw sugar until October 31. Sugar stocks had rallied sharply in recent weeks as sugar rates climbed almost 40% over two months against the backdrop of tightening supplies, prompting India, the world's largest sugar consumer, to turn to imports.

Balrampur Chini Mills, Dhampur Sugar Mills and Bajaj Hindusthan Sugar shares fell 5% each on Friday, a day after hitting fresh 52-week highs. EID Parry India and Shree Renuka Sugars shares declined over 3% each. Heightened sugar demand ahead of festive season.

For context, the government's decision marks India's first sugar imports in almost a decade, according to the administration order. Sugar demand typically rises between August and November as festivals such as Ganesh Chaturthi, Dussehra and Diwali boost demand for sweets and confectionery. Manufacturers additionally build inventories ahead of the festive season, further supporting demand. The administration has additionally tightened inventory limits, barring dealers handling more than 10 metric tonnes of sugar per month from holding stocks for over 15 days. Live Events.

Last month, the administration directed dealers to hold sugar stocks for no more than 30 days to bolster supplies. Are DLF, Godrej Properties, Sobha, other realty stocks heading for a rally? Here is why analysts remain bullish What lies ahead?

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. Further, a 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. 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. Dividend alert! Last day to purchase Senco Gold, NALCO among 10 stocks for dividend rewards (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times).

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Taken together, the developments around relief steps for sugar prices drag these stocks down point to a situation that is still moving, and the coming days should bring more clarity.