Dalmia Bharat Sugar & Industries was the biggest gainer, rising as much as 8.6% intraday, while Balrampur Chini Mills gained up to 6.4%. Triveni Engineering & Industries and Shree Renuka Sugars advanced as much as 5% each, while EID Parry rose nearly 3%.
The rally came as raw sugar prices climbed to an 18-month high, rising around 4% overnight, 11% over the past month and 33% so far in 2026.
Global sugar prices hit 18-month high
The global supply outlook has tightened, with StoneX estimating a sugar deficit of around 9,00,000 tonnes for 2026-27. Production concerns have emerged across major sugar-producing regions, including Thailand, the European Union and Brazil.
Thailand’s sugar production is expected to fall 17% to below 10 million tonnes, while European Union sugar-beet crops are estimated to be down 19%. In Brazil, rains have delayed harvesting and crushing activity, adding to concerns over near-term availability.
India faces potential sugar shortfall
Domestic supply concerns are also supporting the bullish sentiment. India’s sugar stocks stood at around 36 lakh tonnes as of October 1, while Dalmia Bharat Sugar’s Deputy Executive Director-Sugar & Ethanol Business, Kapil Nema, expects inventories to settle at around 50-55 lakh tonnes.
Nema estimates that India could face a sugar shortfall of around 2 million tonnes, potentially requiring imports. The timing of those imports, however, remains a key policy decision for the government.
“There is a gap of around 2 million tonne which needs to be filled,” Nema said.
He said the government could consider allowing imports either after the current crushing season ends or just before the next season begins.
Domestic production is also facing weather-related risks. Recent rains in Uttar Pradesh have raised concerns over the cane crop and could reduce sugar output from the state by around 1,00,000-2,00,000 tonnes, while Maharashtra and Karnataka have also experienced weaker rainfall.
Government steps in to manage supplies
The government has allowed duty-free imports of up to 1 million tonnes of raw sugar under the Tariff Rate Quota (TRQ) until October 31, while dealers will face a stock limit of 1,000 quintals from October 15 to November 30.
The government could also halt diversion of sugar towards ethanol production if domestic availability tightens further. At the same time, the new sugar crushing season is expected to begin from mid-October, which could bring fresh supplies into the market.
Nema said the recent rise in global sugar prices reflects a more bullish market view amid concerns over Brazilian output. However, he does not see a major global supply deficit when raw and white sugar are considered together.
According to him, the market currently has a raw sugar surplus of around 2-2.5 million tonnes, while white sugar has a deficit of about 1 million tonnes. The key question is whether the raw sugar surplus can be converted into white sugar through refining, which would depend on sufficient incentives for refiners.
Also read: Meesho Q2 Update: Content Commerce NMV more than triples, shares jump 6%
Shares of Balrampur Chini are off the highs of the day but are trading 2.3% higher at ₹686.7. The stock is up 57% so far this year.
Shares of Dhampur Sugar are trading 6.2% higher on Tuesday at ₹187.75. The stock is up 53% so far year-to-date.
Shares of Dwarikesh Sugar are trading 5% higher on Tuesday at ₹46.3. The stock has risen 24% so far this year.