Renuka, Dwarikesh, Ugar, Balrampur Lead Sugar Stock Rally After Centre Removes Ethanol Curbs

Sugar stocks surged in early trade on Tuesday after the Indian government removed restrictions on ethanol production.

Shares of Shree Renuka and Dwarikesh Sugar surged over 15%, while Avadh Sugar and Ugar Sugar were trading 11% higher. Balrampur Chini advanced over 7% and Triveni rose over 5%. Bajaj Hindustan's stock was up over 12%.

According to an official statement on Monday, India, the world's second-biggest sugar producer, has allowed production of ethanol from sugarcane juice, syrup, and all types of molasses without any restrictions on volumes in the 2025/2026 marketing year.

It had earlier restricted production due to a drop in sugarcane supplies.

In the new ethanol supply year starting from November 1, sugar mills and distilleries can produce ethanol without any quantitative limits, the Ministry of Consumer Affairs, Food & Public Distribution announced.

The government stated that it will periodically review sugar diversion for ethanol to maintain a steady domestic supply. In the upcoming season, sugarcane supplies are set to rise, supported by two consecutive years of strong monsoon rains.

Supreme Court Dismisses PIL Against E20 Mandate

India's push for E20 got a massive boost after the Supreme Court dismissed a Public Interest Litigation (PIL) challenging the Centre's mandate on E20 fuel, which requires blending 20% ethanol with petrol.

The petition had sought the availability of ethanol-free (E0) petrol at all fuel stations and demanded mandatory labelling of ethanol-based fuel to ensure consumer awareness.

The court noted that the government's move aligns with broader energy security and environmental objectives, aimed at reducing crude oil imports and lowering vehicular emissions.

Indian sugar mills such as E.I.D.-Parry, Balrampur Chini Mills, Shree Renuka, Bajaj Hindusthan, and Dwarikesh Sugar have increased their ethanol production capacity in the last few years.

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