Sugar Stocks Spike After Govt's Ethanol Order: Shree Renuka, Dwarikesh Lead Gains

Shree Renuka Sugars Ltd., Dwarikesh Sugar Industries Ltd., and other sugar stocks rose on Tuesday after the Indian government has permitted sugar mills, distilleries to make ethanol without any restrictions in the 2025-26 market year.

Bajaj Hindusthan Sugars And Industries Ltd rose as much as 9.25% at intraday, EID Parry Ltd. spiked 4.08% and Balrampur Chini Mills Ltd. rose 7.82% on Tuesday. Shree Renuka led gains with a 12% surge intraday so far.

The government on Monday permitted sugar mills and distilleries to produce ethanol without any quantitative restrictions in the 2025-26 marketing year starting November. Ethanol Supply Year (ESY) runs from November to October.

"Sugar mills and distilleries are allowed to produce ethanol from sugarcane juice/sugar syrup, B-heavy molasses as well as C-heavy molasses during ESY 2025-26 without any restrictions," the food ministry said in a notification.

It said the department in consultation with the petroleum ministry would periodically review the diversion of sugar to ethanol production in order to ensure a smooth supply of sweetener in the domestic market.

During the current ESY 2024-25, the government has permitted the diversion of 40 lakh tonnes of sugar for ethanol production. Public Sector Oil Marketing Companies (OMCs) sell ethanol blended with petrol.