Sugar stocks traded in the red on Tuesday, with Balrampur Chini Mills, Bajaj Hindusthan Sugar, E.I.D. Parry and Shree Renuka Sugars among the stocks under pressure.
At the latest check, Bajaj Hindusthan Sugar was down 1.82%, while E.I.D. Parry declined 1.83%. Balrampur Chini Mills slipped 0.69%, Dalmia Bharat Sugar & Industries fell 0.10%, Shree Renuka Sugars shed 0.47%, and Triveni Engineering & Industries declined 0.93%.
The weakness comes after the government recently allowed duty-free imports of up to 1 million tonnes of raw sugar, following a sharp rise in domestic sugar prices.
Indian Sugar Mills Association President Niraj Shirgaokar said on Monday that India does not face a sugar shortage and that the recent price spike was driven by speculative stocking and lower production linked to weather-related issues.
“India does not have a sugar shortage and the supply situation is fundamentally strong,” Shirgaokar said, adding that the country has sufficient stocks and supplies to meet festival demand. The association also expects sugar prices to cool in the coming days.
The Centre's August 20 decision to allow duty-free imports came after sugar prices in retail and wholesale markets rose 24% in a month to Rs 56-60 per kg, according to the information provided.
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