Sugar stocks soar as government lifts ethanol production cap
Sugar stocks shot up on Tuesday after the Indian government scrapped all caps on ethanol production for the 2025-26 marketing year.
Now, sugar mills and distilleries can make as much ethanol as they want from sugarcane juice, sugar syrup, and molasses.
This is expected to give a big boost to their earnings as India pushes for cleaner fuel.
Government assures there will be enough sugar available
This move supports India's plan to promote ethanol blending in fuel—a step toward greener energy and less oil dependence.
There's enough supply for both sugar and ethanol.
The government says it'll keep an eye out to make sure enough sugar stays available at home.
Investors react positively to the news
Investors are excited about better profits for sugar companies: Rajshree Sugars & Chemicals surged as much as 20%, while Shree Renuka Sugars and Dhampur Sugar Mills rose over 11.5%.
Other big names like Uttam Sugar also saw solid gains, showing optimism across the sector now that previous restrictions from last year are gone.