Sugar stocks continued their bullish trend on Wednesday due to concerns regarding lower output, tight supply, and rising sugar prices. The stocks of companies like Balrampur Chini Mills, Sakthi Sugars, Uttam Sugar, Avadh Sugar, EID Parry, and Dalmia Bharat saw significant gains.
Uttam Sugar was the top performer with a 9.40% surge to close at ₹252.45, while Dalmia Bharat rose by 6.87% to ₹364.55. Balrampur Chinni Mills gained 7.14% to close at ₹539.70, hitting an intraday high of ₹559. Sakthi Sugars ended 8.55% higher at ₹23.49, Avadh Sugar rose 2.66% to ₹434.70, and EID Parry grew by 2.30% to close at ₹758.45.
Other sugar stocks like Magadh Sugar, Dwarikesh Sugar Industries, Bajaj Hindustan Sugar, Shree Renuka Sugar, and Rana Sugars also recorded gains of nearly 6% each.
The Indian Sugar and Bio-Energy Manufacturers Association (ISMA) recently assured that there is stable and sufficient availability of sugar reserves for the ongoing marketing season, easing concerns of shortages and supply constraints. ISMA revised its net production estimates downward to 264 lakh tonnes for the current marketing year ending in September.
India has produced around 238 lakh tonnes of sugar as of March 15, 2025, with approximately 200 sugar mills still operational. ISMA is optimistic about the upcoming 2025-26 season due to favorable weather conditions and improved planting.
According to Shailesh Kanani, a Research Analyst at Centrum Broking, sugar prices are expected to remain strong due to lower production. Balrampur Chini Mills is Centrum’s top pick in the sector.
Overall, the sugar sector is witnessing a positive outlook, and investors are bullish on sugar stocks as the industry braces for potential supply challenges.
