Amid a significant increase in sugar prices, which is causing political debate in the country, there is a strong rise among the shares of companies involved in sugar production listed on the Indian stock market. Shares of enterprises such as Dhampur Sugar and Balrampur Sugar are showing rapid growth, enriching investors.
Issues related to sugar prices continue to cause political tension in India. The opposition uses the rise in sugar prices during the festive season as a reason to criticize the government, alleging that the use of sugarcane for ethanol production reduces sugar supply and leads to price increases. However, the government under Narendra Modi rejects these claims, stating there is no sugar shortage in the country and denying any link between rising prices and ethanol production. It should be noted that the retail price of sugar has reached or exceeded 65 rupees per kilogram, showing an increase of approximately 15 percent in a month.
Against the backdrop of rising sugar prices, Balrampur Chini Mills shares are growing steadily. In just five trading days, the company's stock increased by approximately 11 percent. On Monday, it traded in the green zone at 728.90 rupees. At the same time, Uttam Sugar Mills shares rose by almost 10 percent at the opening of trading on Monday and climbed by 8.48 percent by the time of writing, reaching 350.71 rupees.
Among the sugar production-related stocks, Dhampur Sugar Mills stands out. Its share grew by 12 percent in just five days. On Monday, at the start of trading, it jumped by more than 6 percent, reaching 199.92 rupees, which is its fifty-two-week high. Over the last month, this stock has provided investors with an impressive return of about 38 percent.
When examining the shares of other companies involved in the production and sale of sugar, Bajaj Hindusthan Sugar Limited's stock shows explosive growth. On the first trading day of the week, Monday, the company's shares rose by approximately 12 percent, bringing profits to investors. Over five trading days, the value of this stock increased by 40 percent, reaching a new fifty-two-week high of 26 rupees.
In addition, other stocks that have shown growth amid the increase in sugar prices include Dalmia Bharat Sugar & Industries shares. These shares reached 520 rupees on Monday and rose by approximately 10 percent over the last five days. Furthermore, there was a significant jump in the price of Shri Renuka Sugar, which rose by approximately 9 percent, reaching 27.68 rupees.