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Rice and sugar stocks have emerged as strong performers in the equity market. Among rice stocks, LT Foods gained 11.78 per cent in one week, while KRBL rose 10.39 per cent. Chaman Lal Setia Exports advanced 10.76 per cent, while GRM Overseas gained 3.60 per cent during the period.

Rice and sugar stocks have emerged as strong performers in the equity market, with several companies delivering double-digit returns in the past week amid expectations of higher prices and improving demand.

Among rice stocks, LT Foods gained 11.78 per cent in one week, while KRBL rose 10.39 per cent. Chaman Lal Setia Exports advanced 10.76 per cent, while GRM Overseas gained 3.60 per cent during the period.

Sugar stocks witnessed an even sharper rally. Bajaj Hindusthan Sugar surged 41.66 per cent in one week, while Dwarikesh Sugar Industries gained 30.40 per cent. Shree Renuka Sugars rose 13.22 per cent, and Dhampur Sugar Mills gained 10.11 per cent.

Rice prices rise to one-year high

Indian rice export prices have moved to their highest level in about a year, supporting the outlook for rice exporters and processors.

The rise in prices comes at a time when concerns over production and supply are increasing. The impact of weather conditions on the crop has emerged as an important factor for the rice market.

The El Nino weather phenomenon has added to concerns over agricultural production. In addition, rainfall in India this year has remained around 13 per cent below the average, raising concerns over crop output in some regions.

Higher rice prices can support the realisations of rice companies, although the impact on individual companies will depend on their inventory levels, procurement costs and export volumes.

Freight costs add to pressure on rice exports

Apart from rice prices, freight costs have also become an important factor for exporters.

Freight rates have increased sharply following the Middle East conflict, with rates reportedly almost doubling. Higher transportation costs increase the overall cost of exporting rice and can put pressure on exporters' margins.

However, stronger export prices and improving international demand could partly offset the impact of higher freight costs.

Currency movements are another important factor for rice exporters. Changes in the rupee against the US dollar can affect export realisations and margins.

African demand supports rice stocks

Another factor supporting the rice sector is an increase in import demand, particularly from African markets. Higher demand from overseas buyers, combined with concerns around supply, has supported rice prices. For Indian rice exporters, stronger export demand can provide support to volumes and realisations.

The combination of higher export prices and improving demand has therefore brought rice stocks into focus. LT Foods, KRBL, GRM Overseas and Chaman Lal Setia Exports were among the stocks that gained on Monday.

LT Foods rose 9.10 per cent to Rs 466.50, while KRBL gained 7.34 per cent to Rs 436.80. Chaman Lal Setia Exports jumped 8.15 per cent to Rs 311.85 and GRM Overseas advanced 5.41 per cent to Rs 91.40.

Sugar prices also hit multi-month highs

Sugar stocks have also seen strong buying interest as domestic and international sugar prices have moved higher. Retail sugar prices in India have reached a 12-month high, while international sugar prices have climbed to their highest level in around 15 months.

Supply concerns are one of the key factors behind the rise. Sugarcane production has come under pressure due to adverse weather conditions, including unseasonal rainfall and dry conditions in some areas.

The market is also expecting demand for sugar to increase during the upcoming festive season. Higher prices and expectations of stronger demand can improve the earnings outlook for sugar companies.

Sugar stocks deliver up to 42% in a week

The sharpest gains have been seen in several sugar stocks. Bajaj Hindusthan Sugar was the biggest gainer among the stocks tracked, rising 41.66 per cent in one week. The stock gained 8.95 per cent on Monday to close at Rs 25.20.

Dwarikesh Sugar Industries surged 30.40 per cent in one week and gained 9.45 per cent on Monday to Rs 58.70.

Shree Renuka Sugars rose 13.22 per cent over one week and gained 3.50 per cent on Monday to Rs 26.02. Dhampur Sugar Mills advanced 10.11 per cent in one week and rose 1.33 per cent on Monday to Rs 187.69.

The government has also tightened inventory rules for bulk sugar consumers. From September 1 to November 30, 2026, consumers using more than 10 metric tonnes of sugar will be allowed to maintain only 15 days of stock.

Source : zeebiz