Balrampur Chini, Bajaj Hind, Shree Renuka shares rise up to 13%; here's why

Sugar stocks climbed up to 13 per cent in Thursday's trade, extending their recent surge,  as global raw sugar prices touched a 15-month high and domestic prices rose to around Rs 5,400 per quintal amid tight supplies, low mill inventories and expectations of strong festive demand. Higher sugar realisations are positive for mill margins, though potential government intervention remains a key risk, analysts warned.

Balrampur Chini Mills Ltd led the gainers, soaring 12.92 per cent to Rs 735 apiece on BSE. Bajaj Hindusthan Sugar Ltd shares gained 10.83 per cent to Rs 22.60. Shree Renuka Sugars Ltd saw its shares jumping 6.85 per cent to Rs 25.90. Dhampur Sugar Mills Ltd advanced 6.61 per cent to Rs 188. Dwarikesh Sugar Industries Ltd advanced 11.95 per cent to Rs 54.05. Simbhaoli Sugars Ltd rose 4.92 per cent to Rs 7.89.
A Bloomberg report suggested that Indian bulk consumer of sugar using more than 10 tons a month cannot hold inventories exceeding 15 days of their requirement, according to a food ministry order. The restriction will be in place from September 1 to November 30.  
There are reports the government was looking to cut import duties on sugar to help crub domestic prices that recently rose to record.  Officials, as per Bloomberg, were looking at a proposal of lowering or scraping 100 per cent tax on inbound shipments to boost local supplies.

Spot data available with NCDEX suggested Kolhapur sugar jumped 24.82 per cent to Rs 5,430 on August 20 from Rs 4,350 on July 31.  Local prices have risen amid dwindling inventories, which may even force India to import sugar, especially with the 2026-27 crushing season likely to be delayed, Bloomberg reported recently.