Balrampur Chini, Shree Renuka, Bajaj Hind, Triveni: Why sugar stocks are falling today

Sugar export ban impact on sugar stocks today: At least 17 listed sugar stocks, including Balrampur Chini Mills, Shree Renuka Sugars, Bajaj Hindusthan Sugar Ltd and Triveni Engineering & Industries plunged up to 5 per cent in Thursday’s trade after the government suspended sugar exports with immediate effect, halting overseas shipments of both raw and refined sugar until September 30, 2026, or until further directions are issued. The move is aimed at keeping domestic sugar prices under check amid mounting supply concerns and politically sensitive food inflation.

April CPI inflation came in at 3.5 per cent YoY, well below expectation, but HSBC said it was calm before the climb and that FY27 will need attention. "We find that average temperature is rising with global warming, crossing thresholds, and mattering more for food inflation than even rains. This is particularly relevant in El Niño years, when the spike in temperature can be meaningful," HSBC said.

Among sugar stocks, Shree Renuka Sugars Ltd fell 2.57 per cent to open at Rs 24.24 apiece. Balrampur Chini Mills Ltd declined 1.67 per cent to Rs 540.15. Bajaj Hindusthan Sugar Ltd was down 1.86 per cent at Rs 18.42. Triveni Engineering & Industries Ltd fell 2.43 per cent to Rs 379.15. Dhampur Sugar Mills Ltd slipped 2.6 per cent to Rs 149.90. Dalmia Bharat Sugar and Industries Ltd dropped 2.36 per cent to Rs 358.20. 
 
Bannari Amman Sugars Ltd fell 5 per cent to Rs 3,749.45. Prudential Sugar Corporation Ltd also fell 5 per ecnt to Rs 16.01. Rana Sugars Ltd was trading 2.03 per cent lower at Rs 13.49.  
 
"Government banned sugar exports with immediate effect until September 30, 2026, or until further orders, as the world’s second-largest sugar producer moved to contain rising domestic prices. The restrictions apply to both raw and white sugar exports, although shipments already in the pipeline will be permitted under specified conditions," Devarsh Vakil, Head of Prime Research at HDFC Securities said.

Earlier this year, the government had cleared mills to export 1.59 million tonnes, expecting domestic production to comfortably cover national consumption. That assumption has since eroded. Industry projections now suggest India may produce less sugar than it consumes for the second consecutive season, largely due to lower sugarcane yields in key producing states.