Shares of Dhampur Sugar Mills Ltd surged 10% on Tuesday, September 2, to ₹138.45 on the NSE, after the government allowed unrestricted ethanol production from sugarcane juice, syrup, and all types of molasses for the 2025/26 supply year.
Policy update
In a notification on Monday, the Ministry of Consumer Affairs, Food & Public Distribution said sugar mills and distilleries can now produce ethanol without any quantitative restriction starting November 1, 2025. The government will periodically review sugar diversion to ethanol to ensure year-round domestic sugar availability.
The decision comes after production was capped in the current year due to lower cane supplies. However, expectations of higher sugarcane output—driven by two consecutive years of good monsoon rains—prompted the policy shift.
Industry reaction
A sugar miller from Maharashtra called the move “welcome,” adding that raising ethanol procurement prices would help mills clear government-fixed cane dues to farmers.
India’s top sugar producers, including E.I.D.-Parry, Balrampur Chini Mills, Shree Renuka, Bajaj Hindusthan, and Dwarikesh Sugar, have all scaled up ethanol capacity in recent years.
Strategic importance
India, the world’s second-largest sugar producer and the third-biggest oil consumer, is targeting 20% ethanol blending in gasoline by 2025/26 as part of its energy transition strategy.
Stock snapshot – Dhampur Sugar Mills (NSE)
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Current Price: ₹138.45
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Change Today: +10.04% (+₹12.63)
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Previous Close: ₹125.82
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Day Range: ₹133.00 – ₹141.90
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52-Week Range: ₹110.00 – ₹234.00
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Market Cap: ₹8.92B
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P/E Ratio: 17.65
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Avg. Volume: 90.60K