Sugar prices have jumped 10 per cent over the past month to a record high and are expected to remain high for at least the next three months as supplies tighten and festival demand gathers pace.
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Sugar stocks extended gains on Thursday, with Avadh Sugar & Energy, Zuari Industries, Dwarikesh Sugar, Bannari Amman Sugars and Balrampur Chini Mills gaining up to 14 per cent after the government tightened sugar stockholding limits amid record-high prices.
The Ministry of Consumer Affairs, Food & Public Distribution has restricted bulk consumers using over 10 MT of sugar per month from holding more than 15 days’ stock. The order will take effect from September 1 and remain in force until November 30, 2026.
Sugar price surge
Sugar prices have jumped 10 per cent over the past month to a record high and are expected to remain high for at least the next three months as supplies tighten and festival demand gathers pace.
Stocks in action
Avadh Sugar & Energy jumped 10.5 per cent to hit a fresh 52-week high of ₹815.10 on the BSE. Zuari Industries gained 8.5 per cent to ₹284.35 on the BSE.
Bannari Amman Sugars soared over 5 per cent to ₹3,818 on the BSE, while shares of Balrampur Chini Mills zoomed over 8 per cent to hit a fresh 52-week high of ₹706 on Thursday.
Bajaj Hindustan Sugar also rallied over 8 per cent to ₹22.10 on the BSE, closer to its 52-week high level of ₹23.30.
Shree Renuka Sugars surged 6.6 per cent to ₹25.84 on the BSE from the previous close of ₹24.24.
EID Parry India rose 1.6 per cent to ₹800.30 on the BSE from the previous close of ₹787.15.
Shares of Dalmia Bharat, Uttam Sugar, Dwarikesh Sugar, which gained 14 per cent, and Magadh Sugar also rallied on Thursday.
Nitant Darekar, Research Analyst at Bonanza, said, sugar mills are sitting on inventory they valued at roughly ₹37 a kg in June and are now selling above ₹46.
“For Balrampur, that gap is worth about ₹400 crore on its carried book against quarterly EBITDA of ₹114 crore, and Triveni and Dalmia Bharat Sugar have the same asymmetry in smaller size. That repricing shows up in the September and December quarters. Stock limits squeeze the trade pipeline; they do not touch mill economics. “
“My concern is positioning rather than fundamentals, because several of these names are already up 30 per cent to 50 per cent this month. It is advisable to select the integrated, low debt players,” Darekar added.
Published on August 20, 2026
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