Sugar stocks rally up to 19%; Bajaj Hindusthan, Dwarikesh, 7 others hit 52-week highs

Shares of sugar companies rebounded sharply on Monday after Friday’s sell-off, with several stocks hitting fresh 52-week highs as tighter government curbs on stockholding revived investor sentiment amid soaring domestic sugar prices.

Bajaj Hindusthan Sugar was among the top gainers, hitting a fresh 52-week high of ₹26 on the BSE. Dwarikesh Sugar Industries surged nearly 10% to touch a 52-week high of ₹59.89.

Similarly, Uttam Sugar Mills touched a fresh 52-week high of ₹358.70, while Ugar Sugar Works jumped 6% to hit a 52-week high of ₹62.

Among others, Dhampur Sugar Mills, Avadh Sugar & Energy and Magadh Sugar & Energy also touched their respective 52-week highs during the session. Dalmia Bharat Sugar and Industries and Mawana Sugars also hit fresh 52-week highs.

Vishwaraj Sugar Industries was the top gainer in the sugar pack, rising as much as 18.98% on the BSE. E.I.D. Parry, Sakthi Sugars and KM Sugar were among the other notable gainers.

Meanwhile, the broader market remained subdued, with the Nifty 50 down 0.34% at 24,169.50 and the Sensex lower 0.33% at 77,283.77 at the time of reporting.

Govt measures boost sentiment

The sugar stocks got a boost after the Centre on Thursday approved duty-free imports of 1 million metric tonnes of raw sugar, with the facility available until October 31. India generally levies a 100% import duty on sugar.

The import move is aimed at augmenting domestic supplies and easing price pressures ahead of the festive season. Separately, the government has tightened stockholding restrictions to prevent hoarding and speculative trading and ensure adequate availability of sugar. It has also ordered physical verification of sugar stocks at mills to check hoarding and artificial scarcity.

Earlier last week, the Ministry of Consumer Affairs, Food and Public Distribution reduced the permissible sugar inventory for bulk consumers to 15 days from the earlier limit of 30 days. The revised restriction will be effective from September 1 to November 30, 2026.

Under the new order, bulk consumers using more than 10 metric tonnes of sugar a month as a raw material for production, consumption or other use will not be allowed to maintain sugar stocks exceeding their 15-day requirement. Government institutions, including those belonging to the Centre, states, Union Territories and local bodies, have been exempted from the restriction.

The government’s move comes against the backdrop of a sharp increase in domestic sugar prices. Sugar prices have risen around 10% in August, prompting the Centre to tighten inventory restrictions to prevent excessive stockpiling and improve availability for industrial consumers.

The latest order follows the government’s decision last month to cap sugar inventories held by dealers at 30 days. The move was aimed at ensuring adequate supplies and preventing traders from accumulating excessive stocks amid rising prices.

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