Weak monsoon, strong export demand lift Indian rice stocks; sugar rally extends

E I D-Parry (India)

24/08/2026 10:35

By Vivek Kumar M
Aug 24 (Reuters) - A weak monsoon and strong export demand lifted shares of Indian rice exporters on Monday, as they joined a rally in sugar stocks from last week, with investors betting that tighter supply will lift prices and bolster earnings ahead of the festive season.
The rally underscores how the uneven rainy season is reshaping the outlook for India's key agricultural outputs, even as investors weigh how much of the good news is already priced in.
Indian rice export prices climbed to their highest level in a year last week on improved demand from African buyers and concerns over the new-season harvest due to below-normal monsoon rainfall.
Sugar futures on the Intercontinental Exchange also headed back towards the prior session's more than one-year peaks.
Shares of rice exporting companies KRBL KRBL.NS, LT Foods LTOL.NS and Chaman Lal Setia Exports CLSE.NS jumped between 8% and 9% on Monday.
Major sugar companies such as Shree Renuka Sugars SRES.NS, EID-Parry EIDP.NS, and Bajaj Hindusthan Sugar BJHN.NS soared 5% to 10%, extending last week's bumper gains. Shares of these companies have jumped as much as 51.5% this month.
The sugar rally reflects a genuine supply squeeze rather than sentiment alone, said Ponmudi R, CEO of Enrich Money.
The current sugar shortage is substantially linked to damage from excessive rainfall in the previous crop, while the current weak monsoon is an additional risk to the next crop.
A Barclays Research note showed that all-India season-to-date rainfall was 13% below the long-period average, as of August 23.
But the price outlook remains uncertain. While rice exporters may benefit from firmer overseas prices, sugar mills face the prospect that India's new duty-free raw-sugar imports will ease domestic shortages and cap local prices.
Ponmudi remains "cautiously positive" on rice exporters, but said further gains will depend on export volumes, currency moves and earnings upgrades, not just higher commodity prices.
     
     

 (Reporting by Vivek Kumar M; Editing by Rashmi Aich)
 ((VivekKumar.M@thomsonreuters.com;))