Balrampur Chini Mills share price has rallied over 10% in the last five sessions on NSE, despite Centre’s tighter restrictions on sugar stockholding.
On Monday, the sugar stock opened at ₹732.95 apiece on NSE, as compared to previous close of ₹729.35 on Friday. The stock surged as much 2.86% on 24 August, touching an intraday high of ₹751.70.
What's behind the rally?
The stock has rallied despite the Centre’s tighter restrictions on sugar stockholding, as investors remain focused on the ongoing supply tightness, robust festive-season demand and elevated sugar prices.
In its latest order, the government barred dealers and traders consuming more than 10 metric tonnes of sugar a month from holding inventory exceeding 15 days of their requirements. The restriction will remain in force from September 1 to November 30, 2026, with the aim of preventing hoarding, improving market availability and bringing down record-high sugar prices.
This follows the government’s August 1 directive that limited sugar dealers to holding stocks equivalent to no more than 30 days of consumption, subject to a maximum inventory of 4,000 quintals. Despite these measures, sugar prices have risen nearly 10% over the past month.
The latest restriction is viewed as marginally negative for sugar mills in the near term, as the government’s broader objective is to contain further price increases.
Industry estimates showed that the all-India average ex-mill sugar price climbed to around ₹5,400–5,500 per quintal on August 18, compared with nearly ₹3,900 per quintal a year earlier.
With sugar prices at record levels, higher realisations are expected to provide a significant boost to sugar-mill profitability, given that cane costs are largely fixed through government-administered pricing mechanisms.
Balrampur Chini share price trend
Balrampur Chini share price trend has remained positive despite weak market sentiments. The sugar stock has rallied over 11.25% in a week and 19.57% in a month.
Furthermore, the sugar stock has given 66.45% returns on year-to-date (YTD) basis and 25% in a year.
Looking at the broader level, the stock has delivered 85.59% in three years and 103.25% in five years.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
