Analysts attribute the current rally in sugar stocks to the latest surge in global sugar prices. US sugar futures rose 4 per cent in a day, 14 per cent in a month, and over 23 per cent in a year.
Share price of Balrampur Chini Mills, one of the largest sugar producers in India, surged 13% to ₹738 on the BSE on the back of three-fold jump in the average trading volume.
Sugar stocks including, Dwarikesh Sugar, and Balrampur Chini fell up to 4 per cent in trade after the government prohibited sugar exports with immediate effect until September 30.