2 hrs ago
Sugar Stocks Rise as Higher Prices Lift Profit Expectations
Several sugar-company shares went up in early trading.
Avadh Sugar and Shree Renuka Sugars rose the most, by 6% each.
Other companies, including Dhampur Sugar and Balrampur Chini Mills, also gained.
Investors expect higher sugar prices to help producers earn more money.
A brokerage called DAM Capital remained positive about the sugar industry.
It raised its estimate for how much sugar companies may realize from sales in the next two financial years.
Sugar prices increased sharply between June and the end of August 2026.
The government responded with measures intended to improve supply and prevent hoarding.
Avadh Sugar and Energy and Shree Renuka Sugars each rose 6% in early BSE trading.
Dhampur Sugar gained 5.5%, while Balrampur Chini Mills advanced 4.66%.
Ugar Sugar, Magadh Sugar and Energy, and EID Parry also recorded gains.
DAM Capital retained a positive view of the sugar sector and raised its FY27 and FY28 sugar-realisation estimate to Rs 47 per kg.
Domestic sugar prices rose from Rs 38–41 per kg in June 2026 to Rs 52–55 per kg by late August, prompting government measures including duty-free imports and stockholding limits.
- Who
- Shares of Avadh Sugar and Energy, Shree Renuka Sugars, Dhampur Sugar Mills, Balrampur Chini Mills, EID Parry, Ugar Sugar, and Magadh Sugar and Energy.
- What
- Sugar stocks rose by up to 6% in early BSE trading.
- Where
- On the Bombay Stock Exchange in India.
- When
- In early trading on the day described; the article provides no calendar date.
- Why
- Higher domestic sugar prices are expected to improve producers’ profits, while DAM Capital maintained a positive sector view and raised its sugar-realisation estimates.
Key facts
- Top gainers
- Avadh Sugar and Energy and Shree Renuka Sugars rose 6% each.
- Dhampur Sugar price
- Rs 176.85, up 5.5% from Rs 167.55.
- Balrampur Chini Mills price
- Rs 721.60, up 4.66%.
- Sugar-price increase
- Domestic prices rose from Rs 38–41 per kg in June 2026 to Rs 52–55 per kg by late August.
- Revised realisation estimate
- DAM Capital raised its FY27 and FY28 estimate to Rs 47 per kg from Rs 43–44 per kg.
- Government response
- The government announced 10 lakh tonnes of duty-free imports, a 15-day stockholding cap for bulk buyers, and anti-hoarding action.
Sources
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