Sugar stocks rally 3-19% as monsoon covers most parts of the country

Sugar stocks gained momentum on June 27 on back of monsoon that has finally covered most of the country this week.

Rajshree Sugars was the biggest gainer among them with 19 percent upside, followed by Balrampur Chini, Bajaj Hindusthan, Uttam Sugar, Ugar Sugar, Dalmia Sugar, Dhampur Sugar, Dwarikesh Sugar, Kothari Sugars, Sakthi Sugars, etc., which gained between 3-7 percent intraday.

Monsoon rains have covered most parts of cane fields in Western India, Met Department said earlier this week. Hence, a shortfall in monsoon rains narrowed to 37 percent of the long-term average against 44 percent between June 1 and June 19, the office added.

Monsoon rains are crucial for farmers who plant cane as well as corn, cotton, rice and soybean in June and July.