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Sugar stocks fall as dealers’ stockholding limit is cut

The revised ceiling takes effect September 15 and lasts until November 30, 2026, with dealers barred from holding more than 2,000 quintals and keeping stocks for over 30 days after receipt.

Reported · Written up by our desk · Trade & Tariffs

Sugar stocks extended losses on Wednesday, September 2, as investors digested the government’s latest move to tighten stockholding limits for dealers to curb hoarding and speculative trading and help keep domestic sugar prices stable, according to LiveMint Markets.

The restrictions further pressured the sector after heavy selling over the prior two sessions, with Balrampur Chini Mills down about 8%, Dwarikesh Sugar Industries down around 8%, and Dalmia Bharat Sugar down about 7%. Other declines included Avadh Sugar & Energy down roughly 6%, Dhampur Sugar Mills down over 6%, Shree Renuka Sugars down about 5%, Bajaj Hindusthan Sugar down around 4%, and EID Parry down about 2% over the same period.

During Wednesday’s trade, Balrampur Chini Mills fell 4.5% to ₹638.60, Dalmia Bharat Sugar dropped 3.6% to ₹451, and Dhampur Sugar Mills declined about 3% to ₹168.03. Avadh Sugar & Energy fell over 2% to ₹806, while Shree Renuka Sugars and Dwarikesh Sugar Industries were lower at ₹23.73 and ₹48.31, respectively.

The government’s decision reduces the maximum quantity dealers can hold to 2,000 quintals from 4,000 quintals, effective September 15. Under the new norms, dealers cannot retain sugar stocks for more than 30 days from the date of receipt and cannot hold more than 2,000 quintals at any point in time or location, with the limit running until November 30, 2026.

Latest closeSugar $18.38 ▲3.2%

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