Sugar stocks tumble after duty-free import move; Dalmia Bharat Sugar, Dwarikesh Sugar, Balrampur Chini Mill fall up to 5%

Shares of sugar companies came under heavy selling pressure in early trade on Friday after the government permitted duty-free imports of 1 million metric tonnes of raw sugar, raising concerns over the impact of higher domestic supplies on sugar prices and producers' realisations.

Dalmia Bharat Sugar emerged as the biggest loser among the major sugar stocks, declining 5.47% to ₹480.30. Dwarikesh Sugar Industries fell 4.32% to ₹52.99, while Balrampur Chini Mills dropped 4.15% to ₹735.25. Triveni Engineering & Industries was down 3.82% at ₹288.60.

Uttam Sugar Mills declined 3.07% to ₹325.90, while EID Parry fell 2.22% to ₹792.30. Dhampur Sugar Mills slipped 1.99% to ₹185.99, followed by Avadh Sugar & Energy, which was down 1.53% at Rs 802.20.

Bajaj Hindusthan Sugar fell 1.41% to ₹23 and Shree Renuka Sugars declined 1.03% to ₹25.86. Simbhaoli Sugars, however, remained unchanged at ₹7.89.

The broader market remained largely flat with a positive bias. The Sensex was up 0.03% at 77,560.02, while the Nifty 50 gained 0.02% to 24,239.4.

Government opens import window

The government 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 move is aimed at improving domestic availability and easing a sharp rise in sugar prices. It also marks India's first major sugar import intervention in almost a decade, following a period of tighter supplies and lower production.

As per reports, domestic sugar prices have climbed nearly 40% over the past two months.

The decision comes ahead of the festive season, when demand for sugar typically rises as sweet and confectionery consumption increases. Bulk buyers are also expected to build inventories, making the timing of additional imports significant for the domestic market.

Under the new arrangement, port-based sugar refineries can seek allocations from the 1-million-tonne quota. These refineries generally import raw sugar duty-free, process it and export the refined product.

The government has also allowed refined sugar made from raw sugar that had already been imported by such refiners to be sold in the domestic market until October 31.