Indian sugar stocks experienced significant declines in Friday's trade after the government announced a policy allowing duty-free raw sugar imports. Major players like Shree Renuka Sugars, Dwarikesh Sugar, Balrampur Chini Mills, Bajaj Hindusthan Sugar, and Sakthi Sugars all saw their share prices fall by up to 5 percent following the news.
Government Policy to Stabilize Prices
The Ministry of Commerce issued a notice on Thursday, permitting the import of up to 1 million tons of raw sugar without any tariffs until October 31. This measure is a direct response to rising local sugar prices, particularly ahead of India's anticipated festival season, which typically sees increased domestic demand for sweets and processed foods.
Currently, inbound sugar shipments face a 100 percent levy. The new policy specifies that only companies with in-house refining capacity will be eligible to import the commodity. Mills and refiners can apply for import permits between August 21 and August 28.
Market Reaction and Broader Context
Individual stock movements reflected the market's reaction. Bajaj Hindusthan Sugar initially fell 5.63 percent, recovering slightly to be down 2.69 percent. Balrampur Chini Mills dropped 1.33 percent after an earlier low of 5.28 percent. Shree Renuka Sugars saw a 2.33 percent decline, while Sakthi Sugars fell 2.61 percent. Interestingly, Simbhaoli Sugars Ltd gained 4.91 percent.
Globally, raw sugar futures in New York surged by as much as 4.1 percent on Thursday, reaching their highest level since April 2025, according to Bloomberg. This indicates the international market's perception of tightening world supplies due to India's rare import move.
As the world's second-largest sugar producer, India last imported sugar for domestic use nearly a decade ago. The decision highlights the severity of the domestic price situation, with ex-mill sugar prices in Maharashtra, a key growing state, recently hitting an all-time high.
Disclaimer: This article provides market news for informational purposes only and should not be construed as investment advice. Readers should consult a qualified financial advisor before making investment decisions.