--- title: "Sugar stocks crash up to 5% as India allows duty-free imports for first time in nearly a decade" type: "News" locale: "en" url: "https://longbridge.com/en/news/296565649.md" description: "Indian sugar stocks plunged up to 5.47% on August 21 after the government permitted duty-free imports of 1 million metric tonnes of raw sugar until October 31. This marks India's first significant import in nearly a decade, aimed at boosting domestic supply and curbing record-high prices ahead of the festival season. The move contrasts with global markets, where sugar futures rose due to increased demand expectations." datetime: "2026-08-21T03:52:32.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/296565649.md) - [en](https://longbridge.com/en/news/296565649.md) - [zh-HK](https://longbridge.com/zh-HK/news/296565649.md) generator: "portal-rs" --- # Sugar stocks crash up to 5% as India allows duty-free imports for first time in nearly a decade Sugar stocks fell sharply in early trade on August 21 after the government allowed duty-free imports of 1 million metric tonnes of raw sugar, a major intervention aimed at boosting domestic supplies and cooling record-high prices ahead of the festival season. Dalmia Bharat Sugar was the top loser among the pack, falling 5.47 percent to Rs 480.30, while Dwarikesh Sugar Industries declined 4.32 percent to Rs 52.99. Balrampur Chini Mills dropped 4.15 percent to Rs 735.25 and Triveni Engineering & Industries fell 3.82 percent to Rs 288.60. Uttam Sugar Mills was down 3.07 percent at Rs 325.90, while EID Parry fell 2.22 percent to Rs 792.30 and Dhampur Sugar Mills declined 1.99 percent to Rs 185.99. Avadh Sugar & Energy slipped 1.53 percent to Rs 802.20, Bajaj Hindusthan Sugar lost 1.41 percent to Rs 23 and Shree Renuka Sugars was down 1.03 percent at Rs 25.86. Simbhaoli Sugars was unchanged at Rs 7.89. The losses came even as the broader market traded largely flat with a positive bias. At 9:17 am, the Sensex was up 25 points, or 0.03 percent, at 77,563, while the Nifty gained 12 points, or 0.05 percent, to 24,244. Market breadth was positive, with 1,498 shares advancing against 941 declining. The government on Thursday allowed duty-free imports of 1 million metric tonnes of raw sugar until October 31 as it seeks to increase supplies and rein in record-high domestic prices. India normally imposes a 100 percent duty on sugar imports. The move marks India's first significant sugar imports in nearly a decade and comes after tightening supplies pushed domestic prices sharply higher. Sugar prices have risen nearly 40 percent over the past two months amid lower production, according to Reuters. The timing of the import window is significant as sugar consumption typically rises during the festival season, when demand for sweets and confectionery increases and large consumers build inventories. The October 31 deadline is aimed at bringing additional supplies into the domestic market during this period of elevated demand. Port-based sugar refineries, which typically import raw sugar duty-free for refining and subsequent export, can apply for allocations under the 1-million-tonne quota. The government will also allow refined sugar produced from raw sugar already imported by these refiners to be sold in the domestic market until the end of October. The import decision represents a significant escalation in the government's efforts to contain sugar prices. Earlier this week, it tightened stockholding restrictions for large consumers, ordering dealers consuming more than 10 metric tonnes a month to hold inventories equivalent to no more than 15 days of consumption. The restriction will apply from September 1 through November 30. The duty-free imports could temper domestic sugar prices by increasing availability, potentially limiting the benefit of elevated realisations for sugar producers. However, benchmark global sugar prices reacted in the opposite direction: white sugar futures in London and raw sugar futures in New York jumped as much as 4 percent following India's announcement, as the country's return to the international market added a major source of demand. Sugar stocks had rallied sharply in the previous two sessions as tight domestic supplies and record prices fuelled expectations of stronger realisations. The rally accelerated on Thursday, when Balrampur Chini Mills surged 18 percent, Dwarikesh Sugar Industries climbed nearly 14 percent and several other sugar stocks gained 7-10 percent. **Disclaimer** **Disclaimer:** *The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. 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