Sugar stocks fall as government directs mills to clear sold sugar within 7 days: Report

Shares of sugar manufacturing companies such as Balrampur Chini, EID Parry, Triveni Engineering, Shree Renuka Sugars, Bajaj Hindusthan, Dalmia Sugar, Dhampur Sugar, Sakthi Sugars and Rana Sugar among others were trading lower on Friday, September 11.

A report suggested that central government has directed all sugar mills to clear sold sugar stock from their premises within seven days and to sell only to dealers registered on the DFPD portal with effect from September 15, 2026, the Directorate of Sugar & Vegetable Oils (DSVO) said in a circular.

Mills have also been asked to submit details of opening stock, production, dispatch, release and closing stock for the first fortnight of September 2026 through their registered email by September 18, 2026, using a prescribed online form, the report added.

Earlier this month, government had reduced the stock holding limit for sugar dealers to 2,000 quintals from 4,000 quintals, effective September 15, in a bid to curb hoarding and speculative trading.

Sugar dealers will not be allowed to hold any stock for more than 30 days from the date of receipt.

Last month, government allowed duty-free import of 10 lakh tonnes of raw sugar under tariff rate quota till October 31 to counter sugar shortage in the country amid upcoming festive season.

On August 19, the Department of Food and Public Distribution directed businesses that consume more than 10 metric tonnes of sugar a month to hold inventories for no more than 15 days.

As of 11:45 am, sugar stocks were underperforming the NIFTY50 index as most of them traded up to 2.5% lower as against 0.55% fall in the NIFTY50 index.