1 week ago
Sugar Stocks Rally as Supply Tightens and Festival Demand Rises
Sugar prices have gone up to record levels.
This is helping companies that make sugar.
Kothari Sugars, Dwarikesh Sugar, and Sakthi Sugars all saw their share prices rise.
Investors became more confident after the government announced new inventory limits.
From September 1, 2026, large buyers such as bakeries and beverage companies can hold only 15 days of sugar.
India also needs more ethanol for blending with petrol.
Some sugarcane is therefore being used to make ethanol instead of sugar.
Festival celebrations starting in September are expected to increase demand for sweets and sugar.
Sugar prices reached record levels as festival-led demand strengthened.
Kothari Sugars rose 16 per cent to Rs 38.6.
Dwarikesh Sugar gained 9 per cent to Rs 58.45, while Sakthi Sugars advanced 8 per cent to Rs 22.80.
The government will limit bulk consumers to 15 days of sugar inventory from September 1, 2026.
Ethanol production and the upcoming six-month festival season are tightening sugar supplies and boosting demand.
- Who
- Sugar mills including Kothari Sugars, Dwarikesh Sugar, and Sakthi Sugars, along with bulk sugar consumers and investors.
- What
- Sugar stocks rallied as sugar prices reached record levels amid expectations of tighter supply and stronger demand.
- Where
- India.
- When
- The rally was triggered last week; the inventory limits take effect on September 1, 2026, and the festival season begins in the first week of September.
- Why
- Government stock limits, increased use of sugarcane for ethanol, and festival-led demand are tightening the sugar market.
Key facts
- Kothari Sugars
- Shares surged 16 per cent to Rs 38.6.
- Dwarikesh Sugar
- Shares added 9 per cent to Rs 58.45.
- Sakthi Sugars
- Shares rose 8 per cent to Rs 22.80.
- Inventory limit
- Bulk consumers will be limited to a maximum of 15 days' inventory from September 1, 2026.
- Sugar prices
- Prices touched record levels amid strong festival-led demand.
- Ethanol impact
- Sugarcane has been diverted toward ethanol production, reducing sugar supplies.
- Festival season
- India's six-month festival session begins in the first week of September.
Sources
Related news
India Tightens Sugar Stock Limits as Festive Prices Hit Records
Government Rejects Ethanol Link, Blames Hoarding for India Sugar Surge
Centre Caps Bulk Sugar Stocks Ahead of Festival Season
Sugar Stocks Rally Up to 13% as Prices Climb
India Sugar Prices Rise as Government Rejects Ethanol Link
