Sugar stocks turn sweeter; Rajshree Sugars zooms 20 pc

New Delhi, Sep 2 (PTI) Sugar stocks were in high demand on Tuesday, with Rajshree Sugars surging 20 per cent, a day after the government permitted sugar mills and distilleries to produce ethanol without any quantitative restrictions in the 2025-26 marketing year starting November.

Shares of Rajshree Sugars & Chemicals skyrocketed 20 per cent, Shree Renuka Sugars zoomed 12.72 per cent, Dwarikesh Sugar Industries surged 12.46 per cent, Dhampur Sugar Mills soared 10.36 per cent, and Sakthi Sugars jumped 8.25 per cent on the BSE.

The stock of Avadh Sugar & Energy rallied 5.03 per cent, Balrampur Chini Mills jumped 4.61 per cent, Bajaj Hindusthan Sugar climbed 4.48 per cent, Mawana Sugars advanced 3.63 per cent, and Uttam Sugar Mills went up by 1.84 per cent.

"Sugar stocks rallied on relaxed ethanol norms," Vinod Nair, Head of Research at Geojit Investments Limited, said.

Vikram Kasat, Head - Advisory at PL Capital, said, "Sugar companies rallied after the government allowed ethanol production without quantitative restrictions from 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 on Monday.

"It is a positive development considering higher sugar production next year. About 5 million tonnes of sugar can be diverted for ethanol in 2025-26," Indian Sugar and Bio-Energy Manufacturers Association (ISMA) Director General Deepak Balani told PTI.

The move will help mills keep sugar stocks in balance as well as check prices and ensure timely cane payment to farmers, he added. PTI SUM SUM SHW