Sugar stocks: Avadh Sugar, Bajaj Hind gain over 6% on duty-free import plan

Avadh Sugar & Energy and Bajaj Hindustan gained over 6 per cent. Meanwhile, Dwarikesh Sugar Industries, Shree Renuka Sugars, Dhampur Sugar Mills gained up to 5 per cent on NSE in intra-day deals.

Shares of sugar companies extended their upward movement on the bourses, surging over 6 per cent on the NSE in Thursday’s intra-day deals, a day after the centre announced plans to import around 1 million tonnes (mt) of raw sugar at nil duty to curb domestic prices.

 

Avadh Sugar & Energy gained over 6 per cent. Meanwhile, Bajaj Hindustan, Dwarikesh Sugar Industries and Shree Renuka Sugars, Dhampur Sugar Mills gained up to 5 per cent on NSE in intra-day deals. Uttam Sugar, Dalmia Bharat, Triveni Engineering & Industries, EID Parry and Balrampur Chini gained in the range of 2 per cent to 3 per cent. In comparison, the Nifty 50 was down up 0.54 per cent at 24,209.15 as of 09:42 AM. 

Vipin Kumar, AVP research at Globe Capital Market, noted that Sugar stocks have performed exceptionally well over the past few weeks, supported by a sharp rise in sugar prices. The majority of sugar stocks are either on the verge of fresh breakouts on the charts or are forming fresh buying pivots, indicating continued underlying strength. "Considering the constructive technical structure and improving momentum across the sector, we suggest selectively adding sugar stocks for short- to medium-term buying opportunities," he added. 

 

 

Kumar said, the sector is likely to remain in focus as long as sugar prices sustain their upward momentum. "Traders should, however, focus on stocks with strong price-volume confirmation and avoid chasing sharp rallies. Fresh positions can preferably be considered on breakouts or on meaningful dips toward key technical support levels."

 

Centre’s action follows sugar’s benchmark ex-mill price in Maharashtra reaching a high of ₹5,400-5,560 per quintal. The spike in prices since March 2026 is largely attributed to bone-dry pipeline stocks with mills, as consumption exceeded production in the 2025-26 season that started on October 1, 2025.

 

In November 2025, the Centre first permitted exports of 1.5 mt of sugar; this was later raised to 2 mt. Of this, around 0.8 mt of sugar has been shipped out of the country before the exports were prohibited.

 

Notably, on Tuesday, Balrampur Chini Mills, the second-most valued sugar company after EID Parry, in its June 2026 quarter (Q1FY27) earnings conference call had citied similar concerns, stating that the season 2025-26 has turned out to be tighter than anticipated, with lower than expected production, healthy domestic consumption and diversion towards ethanol resulting in a drawdown to inventory.

 

This tighter demand-supply balance has led to firming up of domestic sugar prices, providing relief to millers and helping offset higher sugarcane costs and other costs & margin pressures in terms of distillery, especially, the company said.  Disclaimer: View and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers discretion is advised.