As you know, sugar is a commodity and hence it largely operates on the basis of demand and supply. When demand is more than supply, the prices of sugar goes up and the sugar stocks benefit. On the other hand, when the supply is more than demand, the price of sugar comes down and the stocks also underperform. The reason you are seeing sugar stocks falling in the Indian market is due to an excess supply. During the current year, the output sugar is again expected to be at a record 33.5 million tonnes. This is more than demand that is why prices are going down. Since the sugar mills are not getting a good price, they are defaulting on their payments to sugar cane farmers. So, it becomes a big cycle. Till there is excess supply it is better to avoid buying sugar stocks.