Ethanol Expansion Sparks Sugar Stock Surge

Sugar stocks experienced a significant rise after the government allowed sugar mills and distilleries to produce ethanol without restrictions for the 2025-26 marketing year. Major companies like Rajshree Sugars saw share prices jump, driven by potential shifts in sugar production and a balanced market outlook.

On Tuesday, sugar stocks soared as the government announced a new policy allowing sugar mills and distilleries to produce ethanol without any quantitative restrictions starting from the 2025-26 marketing year in November.

Rajshree Sugars & Chemicals led the charge with a 20 percent surge in its stock, followed by Shree Renuka Sugars and Dwarikesh Sugar Industries, which saw increases of 12.72 percent and 12.46 percent, respectively.

Industry experts hailed the move as a positive step towards balancing sugar production and controlling prices while ensuring timely payments to cane farmers.

(With inputs from agencies.)