Sugar stocks witnessed a sharp rally on Tuesday, September 2, after the government allowed ethanol production from sugarcane juice, syrup, and all types of molasses without any restrictions on volumes for the 2025/26 season. The move is expected to boost revenues for sugar companies with higher ethanol blending capacities, driving investor optimism across the sector.
Rajshree Sugars & Chemicals Ltd
Shares of Rajshree Sugars & Chemicals Ltd hit the upper circuit of 19.99%, closing at ₹45.26 on NSE compared to the previous close of ₹37.72.
Shree Renuka Sugars Ltd
Shree Renuka Sugars Ltd jumped 12.61% to ₹32.42, up from its previous close of ₹28.79, supported by strong volumes.
Dhampur Sugar Mills Ltd
Dhampur Sugar Mills Ltd advanced 10.04%, trading at ₹138.45 versus ₹125.82 in the prior session.
Bajaj Hindusthan Sugar Ltd
Shares of Bajaj Hindusthan Sugar Ltd gained 8.71%, rising to ₹22.09 compared to ₹20.32 in the previous close.
Balrampur Chini Mills Ltd
Balrampur Chini Mills Ltd climbed 6.14% to ₹574.90, adding over ₹33 per share in intraday trade.
Dalmia Bharat Sugar and Industries Ltd
Meanwhile, Dalmia Bharat Sugar rose 6.09% to ₹396.30 on NSE, with renewed buying interest.
Sector outlook
The government’s ethanol policy decision has sparked a broad-based rally, with investors betting on higher profitability for sugar mills. With India targeting 20% ethanol blending by 2025/26, sugar companies are expected to see strong revenue diversification beyond traditional sugar sales.
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Sugar stocks jump up to 20% today: Rajshree Sugars up 19.99%, Shree Renuka up 12.61%, Dhampur Sugar up 10.04%, Bajaj Hindusthan up 8.71%
