Shree Renuka, Dwarikesh, Balrampur, Bajaj Hind, Sakthi: Why Sugar stocks are falling today

A host of sugar stocks including Sakthi Sugars Ltd, Dwarikesh Sugar, Shree Renuka Sugars, Shakthi Sugar and Balrampur Chini, among others, fell up to 5 per cent in Friday's trade after  the government allowed sugar mills and refiners to import duty-free raw sugar in an effort to curb rising local prices.

The government has allowed importing of as much as 1 million tons of raw sugar until October 31, free of any taxes, according to a notice from the commerce ministry on Thursday.

At present, Inbound shipments face a levy of 100 per cent. Only companies with in-house refining capacity will be eligible to import the commodity, the ministry said, adding that mills and refiners can apply between August 21 and August 28.

Bajaj Hindusthan Sugar Ltd fell 5.63 per cent to Rs 22.12, but recovered a bit. It was later trading at Rs 22.81, still down 2.69 per cent. Balrampur Chini Mills Ltd was down 1.33 per cent at Rs 756.35. It earlier declined 5.28 per cent to a low of Rs 726.05.  
  
Shree Renuka Sugars Ltd was down 2.33 per cent at Rs 25.55. It slipped to a low of Rs 25.05 earlier today, falling as much as 4.24 per cent. Sakthi Sugars Ltd was quoting at Rs 21.26, down 2.61 per cent. Simbhaoli Sugars Ltd, meanwhile gained 4.91 per cent to Rs 8.34.

Following the development, raw sugar futures in New York surged as much as 4.1 per cent on Thursday to the highest since April 2025, Bloomberg reported.

The fresh government move is seen tightening world supplies and marks a rare step by the second largest sugar producer, which last imported the sweetener for domestic use almost a decade ago. The measure comes just before an expected surge in domestic demand for festival season, when consumers buy more traditional sweets and processed foods, Bloomberg noted, adding that ex-mill sugar prices in Maharashtra, a major Indian growing state, recently hit an all-time high.