Balrampur Chini shares see biggest single-day gain in over four years, hit record high — Here's why

Shares of Balrampur Chini Mills Ltd. surged over 13% to hit a fresh record high on Thursday, August 20.

This is its biggest single-day gain for the stock since January 4, 2022 when the stock had risen 14.2%.

The stock's surge comes after the Centre tightened sugar stock limits. The government has issued a fresh order as per which no dealer using more than 10 metric tonne of the sweetener per month should hold inventories for more than 15 days. The same is with effect from September 1, 2026 till November 30, 2026.

The restriction is only on dealers and traders and not on sugar mills, and aim to bolster sugar supplies and rein in record prices. They also aim to curb hoarding and cool record sugar prices.

The Centre's order last month had limited dealers to holding sugar stocks for up to 30 days. The same was in effect from August 1, 2026 to November 30, 2026. However, sugar prices have risen sharply by around 10% in the past month.

The all-India average ex-mill sugar price rose to ₹5,400 to ₹5,500 per quintal on August 18, up from ₹3,900 a year earlier, as per an industry body.

As per the FY26 sugar balance, the total sugar availability was at 320 lakh tonne, domestic consumption was at 285 lakh tonne, exports were at 7 lakh tonne and closing stock estimate was at 35 lakh tonne.

The opening stocks were below requirement as the new season begins on October 1. Low stocks during the upcoming festive demand would risk further price spike, as per experts.

Shares of Balrampur Chini are trading 12.9% higher on Thursday at ₹732.5. The stock has now risen 67% so far this year. Along with Balrampur Chini, shares of other sugar stocks such as Dhampur, Dwarikesh, Ugar Sugar works, have all risen between 8% to 11% on Thursday.

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