Raw sugar futures rose to $20.81 per lot on Tuesday, October 6, as mounting supply concerns and low output from major producers in Brazil, India and Thailand pushed prices to their highest level in 52 weeks. The surge in global prices lifted shares of sugar manufacturers such as Dhampur Sugar, Dalmia Sugar, Shree Renuka, Balrampur Chini, EID Parry, Bajaj Hindusthan, Avadh Sugar, Dwarikesh Sugar, Sakthi Sugars and Vishwaraj Sugar. Stock gains ranged from 2 % to 8 %, reflecting investor optimism about the sector’s outlook.

The emerging El Nino weather pattern has intensified concerns about sugarcane production worldwide. In Central and Southern Brazil, unusually high rainfall has disrupted cane harvesting and crushing operations, while India’s weak monsoon season has led to a shortfall in the sugarcane crop. Thailand also faces reduced output, contributing to the tightening of supply and reinforcing the upward pressure on raw sugar prices across global markets.

Earlier this week, the government further tightened the stock‑holding limit for sugar dealers to 1,000 quintals, effective from October 15 to November 30, in a bid to ensure adequate supplies of the sweetener at reasonable prices during the festival season. The new sugar season began on October 1, and the Centre said it was strengthening measures to guarantee availability of sugar to consumers at fair prices during the festive period.

In August, citing a tight supply year, the government had imposed a nationwide stock‑holding limit on dealers of 4,000 quintals, applicable from August 1 to November 30, along with a maximum holding period of 30 days from the date of receipt. The limit was later tightened to 2,000 quintals from September 15, reflecting the authorities’ ongoing effort to curb hoarding and speculation in the sugar market.

According to the ministry, average retail sugar prices have fallen 15 % from their August peak and are expected to decline further as lower prices in the supply chain are realised. Ex‑mill prices have dropped by around 28 % and have remained stable for the past three weeks. The government reiterated that mills, dealers, wholesalers and other market participants must ensure uninterrupted movement of sugar and prevent hoarding and speculation, urging wholesalers and retailers to immediately pass on the benefits of the sharp fall in ex‑mill prices to consumers.