Balrampur Chini Mills Shares Rally 10 Percent Despite Tight Sugar Stock Limits
· Business · LiveMint, Economic Times
Balrampur Chini Mills shares rallied over 10 percent across five sessions, touching an intraday high of ₹751.70 on the NSE despite new government restrictions on sugar stockholding. The Central government barred dealers and traders consuming over 10 metric tonnes of sugar monthly from holding inventory exceeding 15 days of requirements, effective September 1 to November 30, 2026. This measure follows an August 1 directive capping dealer inventories at 30 days of consumption. Despite these anti-hoarding policies aimed at curbing rising food costs, sugar prices have climbed nearly 10 percent over the past month. Industry estimates show all-India average ex-mill sugar prices reached ₹5,400 to ₹5,500 per quintal on August 18, compared to ₹3,900 a year earlier, boosting sugar-mill profitability due to fixed cane costs.
Why it matters
Surging sugar prices and strong investor demand are driving up sugar mill stocks despite government regulatory interventions to control inflation.
Read the original report — LiveMint
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