Sugar Stocks Fall Up to 5% as Government Allows Duty-Free Im

Sugar stocks came under heavy selling pressure on Friday after the government permitted duty-free imports of 1 million tonnes of raw sugar until October 31. The move raised concerns over increased domestic supply and potential pressure on sugar realisations, prompting investors to book profits in sugar companies after their recent gains. Shares of !Balrampur Chini Mills, !Dhampur Sugar Mills, !Bajaj Hindusthan Sugar and other sugar producers declined sharply, with losses extending up to 5%. The stocks had recently gained amid firm sugar prices, expectations of tighter supplies and stronger demand ahead of the festive season. The government’s decision is aimed at ensuring adequate domestic availability and containing a potential rise in sugar prices during the upcoming festive period. However, the prospect of additional imports has weighed on investor sentiment, as higher availability could limit further price increases and affect margins for domestic sugar manufacturers. The duty-free import window will remain open until October 31, providing domestic refiners and sugar companies access to additional raw material. Market participants are now likely to monitor import volumes, domestic sugar prices, production estimates and government policy measures for further direction. The decline was broad-based across the sugar sector, with investors reassessing earnings expectations following the import decision. Despite Friday’s sell-off, the sector continues to benefit from improving demand prospects and supportive pricing trends, although near-term volatility could remain elevated. Investment in securities market are subject to market risks. Read all the related documents carefully before investing