Shares of sugar companies have been on the downtrend in the last one year amid fear of supply glut and volatile market. Some of the stocks have fallen nearly 50 per cent in the last one year.
However, a few such as EID Parry delivered a return of nearly 51 per cent, Bannari Amman Sugars 16 per cent and Balrampur Chini Mills jumped over 12 per cent outperforming the Nifty 50’s 5 per cent gains. These companies have defied the broader sector slump, thanks to their diversified revenue streams, flexible distillery set-ups, low debt and strong financials. Industry analysts see some positives going forward amidst challenging times for the sector.
The global sugar market, entering mid-2025, is experiencing an inflection point defined by strong production in India and Brazil, changing consumer preferences and the accelerating momentum of ethanol-blending programmes. After a period of relative price stability in Q2 2025, recent weeks have seen global raw sugar prices moderate as robust supply from major origins coincides with a tepid uptick in global demand.
