The government’s choice to eliminate all limits on ethanol production from sugarcane juice, sugar syrup, and molasses for the ethanol supply year 2025-26 has highlighted sugar stocks. Stocks of sugar companies like Avadh Sugar & Energy, Bajaj Hindusthan Sugar, Balrampur Chini Mills, Dalmia Bharat Sugar, Dhampur Sugar Mills, KM Sugar Mills, and Dwarikesh Sugar Industries increased by as much as 11% during Tuesday’s trading session.
This policy change, announced on September 1, 2025, permits sugar mills and distilleries to manufacture ethanol without any quantitative restrictions, reversing a limitation imposed in the 2023-24 ethanol supply year due to reduced sugarcane availability.
With sufficient monsoon rainfall improving the prospects for sugarcane production in the upcoming season, this decision is anticipated to benefit sugar companies by increasing their ethanol production, aiding India’s goal of achieving 20% ethanol blending in petrol by 2025, and possibly reaching 30% in the future, according to reports.
