RALLY OF SUGAR STOCKS IN INDIA

15.05.21 03:44 PM - By Manish Singh

 START OF BULL RUN OR A BUBBLE

Recently we have seen huge rally in Indian sugar stocks and investor worry weather to hold or exit from these stocks.

Their are 57 Sugar company stocks listed in India, and the Indian sugar industry is the second largest Agro-based industry in India, It supports over 5 crore farmers and their families, they are directly or indirectly earning bread and better from it. 

Major sugar producing states in India are Uttar Pradesh, Maharashtra and Karnataka which produces more than 80% of total production in Indias production.

Major sugar producing companies listed in India are:

SNOCompany NameSecurity CodeSecurity IdGroupFace ValueISIN No
1Avadh Sugar & Energy Ltd540649AVADHSUGARB 10INE349W01017
2Bajaj Hindusthan Sugar Limited500032BAJAJHINDB 1INE306A01021
3BALRAMPUR CHINI MILLS LTD.500038BALRAMCHINA 1INE119A01028
4BANNARI AMMAN SUGARS LTD.500041BANARISUGB 10INE459A01010
5BSI LTD.507070BSILTDP 10NA 
6Dalmia Bharat Sugar and Industries Ltd500097DALMIASUGB 2INE495A01022
7DCM SHRIRAM INDUSTRIES LTD.-$523369DCMSRMINDX 10INE843D01019
8DHAMPUR SUGAR (KASHIPUR) LTD.502512DHAMSUGRX 10INE735A01013
9DHAMPUR SUGAR MILLS LTD.500119DHAMPURSUGB 10INE041A01016
10DHAMPURE SPECIALITY SUGARS LTD.531923DHAMPUREX 10INE956B01013
11DHARANI SUGARS & CHEMICALS LTD.507442DHARSUGART 10INE988C01014
12DOLLEX INDUSTRIES LTD.531367DOLLEXX 5INE892A01020
13DWARIKESH SUGAR INDUSTRIES LTD.532610DWARKESHB 1INE366A01041
14E.I.D.-PARRY (INDIA) LTD.500125EIDPARRYA 1INE126A01031
15EASTERN SUGAR & INDUSTRIES LTD.507528EASTSUGINDZ 10INE889B01016
16EMPEE SUGARS & CHEMICALS LTD.500132EMPEESUGZ 10INE928B01012
17GAYATRI SUGARS LTD.532183GAYATRIX 10INE622E01023
18GIRDHARILAL SUGAR & ALLIED INDUSTRIES LTD.507506GIRDSGAP 10INE310M01010
19GWALIOR SUGAR CO.LTD.507135GWALSUGP 100NA 
20INDIA SUGARS & REFINERIES LTD.507150INDSUGAP 10 
21INDIAN SUCROSE LTD.500319INDSUCRX 10INE557C01017
22JEYPORE SUGAR COMPANY LTD.590054JEYPORET 10INE180E01014
23JK SUGAR LTD.-$532519JKSUGART 10INE210G01014
24K.M.SUGAR MILLS LTD.532673KMSUGARB 2INE157H01023
25KCP SUGAR & INDUSTRIES CORPORATION LTD.533192KCPSUGINDB 1INE790B01024
26KESAR ENTERPRISES LTD.-$507180KESARENTX 10INE133B01019
27Magadh Sugar & Energy Ltd540650MAGADHSUGARB 10INE347W01011
28MAWANA SUGARS LTD.523371MAWANASUGB 10INE636A01039
29NARAINGARH SUGAR MILLS LTD.531457NARSMZ 10INE491E01015
30OSWAL OVERSEAS LTD.531065OSWALORXT10INE906K01019
31OUDH SUGAR MILLS LTD.507260OUDHSUGB 10INE594A01014
32PARRYS SUGAR INDUSTRIES LTD.500162PARRYSUGARB 10INE353B01021
33Parvati Sweetners and Power Ltd541347PARVATIXT5INE295Z01015
34PICCADILY AGRO INDUSTRIES LTD.530305PICCADILX 10INE546C01010
35PICCADILY SUGAR & ALLIED INDUSTRIES LTD.507498PICCASUGX 10INE544C01023
36PONNI SUGARS (ERODE) LTD.532460PONNIERODEB 10INE838E01017
37PRUDENTIAL SUGAR CORPORATION LTD.500342PRUDMOULIXT10INE024D01016
38RAJSHREE SUGARS & CHEMICALS LTD.500354RAJSREESUGT 10INE562B01019
39RANA SUGARS LTD.507490RANASUGT 10INE625B01014
40RAVALGAON SUGAR FARM LTD.507300RAVALSUGARXT50INE615A01017
41RIGA SUGAR COMPANY LTD.-$507508RIGASUGX 10INE909C01010
42SAKTHI SUGARS LTD.507315SAKHTISUGT 10INE623A01011
43SBEC SUGAR LTD.532102SBECSUGX 10INE948G01019
44Shree Hanuman Sugar & Industries Ltd537709HANSUGARZ 10INE101H01013
45SHREE RENUKA SUGARS LTD.532670RENUKAB 1INE087H01022
46SHREE VAANI SUGARS AND INDUSTRIES LTD.507468SHVANIT 10INE106E01019
47Simbhaoli Sugars Ltd539742SIMBHALSB 10INE748T01016
48SIMBHAOLI SUGARS LTD.-$507446SIMBHSUGARB 10INE270C01017
49SIR SHADI LAL ENTERPRISES LTD.532879SSLELX 10INE117H01019
50THIRU AROORAN SUGARS LTD.507450THIRUSUGARZ 10INE409A01015
51TRIVENI ENGINEERING & INDUSTRIES LTD.532356TRIVENIB 1INE256C01024
52UGAR SUGAR WORKS LTD.-$530363UGARSUGARB 1INE071E01023
53UPPER GANGES SUGAR & INDUSTRIES LTD.530505UPERGANGESB 10INE018B01012
54UTTAM SUGAR MILLS LTD.532729UTTAMSUGARB 10INE786F01031
55VENUS SUGAR LTD.507472VENUSUGXT10INE972B01010
56VISHNU SUGAR MILLS LTD.507405VISHNSGT 100INE211K01014
57Vishwaraj Sugar Industries Ltd542852VISHWARAJB 10INE430N01014



Production Process
  • In global markets, 80% of sugar is extracted from sugarcane and 20% from sugar beet. However, in India sugarcane is the major source.
  • On an average,1 tonne of sugarcane produce 95 kg of sugar and 10.8 litres of ethanol

Government initiatives

The government introduced few schemes to liquidate surplus stocks and bail out the cash-starved sugar industry, which is facing a glut-like situation.

  • The minimum selling price of the sweetener has been increased by 7%
  • The import duty on sugar has been doubled to 100% and the 20% export duty has been scrapped off. Along with this a production assistance has been given which will help the sugar mills to clear their dues to sugarcane farmers.
  • The government has made it compulsory for millers to export two million tonnes of sugar even as the global prices were low and is exploring possibilities to export raw sugar to other Asian countries. This export push initiative will enable the country to grab market share, dispose the surplus stock pile as well as narrow the trade deficit.
  • The government announced a series of soft loans to boost the industry;
  1. Soft loan of Rs 12,900 crore for sugar mills for ethanol capacity.
  2. Separate soft loan of Rs 2,600 crore to molasses-based standalone distilleries to  expand capacity and set up new units.
  3. Soft loan up to Rs 10,540 crore to help mills clear rising arrears to cane growers.
  • Under the Ethanol Blended Petrol Programme (EBP Programme) the government has directed the oil marketers to target 10% blending of ethanol with petrol. Thus, increasing value addition in sugar industry. The procurement price of ethanol derived from 100 per cent sugarcane juice has been raised.

Recent developments
  • India to hold first round of consultation in WTO over sugar subsidies on April 15-16, 2019.
  • Countries like Australia, Brazil, Guatemala, Russia along with European Union have alleged that India distorted market policies on sugar by providing subsidies and assistance which far exceeded the norms set by WTO.
  • Various subsidies and assistance have resulted in higher sugar production/exports which dampened international prices and also lead to global supply glut.
  • Countries like Thailand and Australia are posing stiff competition in the export segment, especially on the back of low cost of production.
  • Global sugar prices fell more than 20% in 2018, mainly due to rise in Indian sugar output.
Some Good Sugar Companies to Invest on are as follows:

  • EID Parry (India) LtdEIDPARRY
  • Balrampur Chini Mills LtdBALRAMCHIN
  • Triveni Engineering and Industries LtdTRIVENI
  • Shree Renuka Sugars LtdRENUKA
  • Dalmia Bharat Sugar & Industries LtdDALMIASUG
  • Bannari Amman Sugars LtdBANARISUG
  • Dhampur Sugar Mills LtdDHAMPURSUG

For more information do mail us on info@manishsingh.co.in 

Manish Singh