SUGAR STOCKS SEE PROFIT BOOKING BALRAMPUR OTHERS FALL

Sugar stocks witnessed profit booking on August 25, with Balrampur Chini, Bajaj Hindusthan Sugar, Shree Renuka Sugars and other sectoral names falling as much as 3.5 percent. The decline came after the government relaxed rules governing duty-free imports of raw sugar, giving importers greater flexibility to process the commodity into refined sugar and sell it in the domestic market. The move comes amid a sharp rise in sugar prices ahead of the festive season, as the government seeks to improve supplies and curb hoarding. In its August 20 notification, the government had permitted duty-free imports of up to 1 million tonnes of raw sugar under a tariff-rate quota (TRQ) until October 31, 2026. Importers were required to refine the imported sugar into white sugar and sell it domestically by the same deadline. The Directorate General of Foreign Trade (DGFT) has now replaced the fixed October 31 deadline with a two-month window from the date of filing the Bill of Entry. The change is expected to provide importers with greater flexibility in processing raw sugar and bringing the refined product to the domestic market. Sugar prices have risen sharply in recent weeks amid tighter supplies and stronger demand ahead of the festive season. The government has attributed the price increase to lower-than-expected sugar production, weather-related crop damage, concerns over global supplies and hoarding. It has, however, rejected the diversion of sugar towards ethanol as the primary reason behind the recent price surge. With domestic supplies under pressure, the government's move to ease raw sugar imports is aimed at improving availability and keeping prices in check ahead of the festive season.