Shares of Shree Renuka Sugars Ltd jumped 12.61% on Tuesday, September 2, to trade at ₹32.42 on the NSE, compared to its previous close of ₹28.79. The stock touched an intraday high of ₹31.71 as investor sentiment turned sharply positive following a major government policy update.
Why are Shree Renuka Sugars shares up today?
The rally comes after the Indian government announced on Monday that sugar mills and distilleries will be allowed to produce ethanol from sugarcane juice, syrup, and all types of molasses without any restrictions on volumes in the upcoming 2025/26 supply year starting November 1, 2025.
Previously, ethanol output had been capped due to lower cane supplies, but with favorable monsoon rains over the past two years, production is expected to rise significantly. The new policy is expected to unlock higher revenues for sugar producers like Shree Renuka, which have expanded their ethanol capacity in recent years.
The government, however, noted it will periodically review sugar diversion to ethanol to ensure adequate domestic availability of sugar.
Stock snapshot – Shree Renuka Sugars (NSE)
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Current Price: ₹32.42 (+12.61%)
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Previous Close: ₹28.79
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Day Range: ₹30.35 – ₹31.71
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52-Week Range: ₹24.71 – ₹56.50
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Market Cap: ₹68.41B
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Avg Volume: 1.94M
Outlook
India, the world’s second-largest sugar producer and the third-largest oil consumer, aims to achieve 20% ethanol blending with petrol by 2025/26. The latest policy shift is expected to accelerate progress toward this target, positioning Shree Renuka Sugars and its peers for strong growth in the ethanol segment.