Government Policy Change Fuels Surge in Sugar Stocks

Shares of sugar companies, including Dalmia Bharat Sugar, Shree Renuka Sugars, and Triveni Engineering, have experienced significant gains, rising up to 13%. This surge follows the Indian government's decision to remove the cap on sugar diversion for ethanol production for the Ethanol Supply Year (ESY) 2024-25.

The policy shift allows sugar mills to produce ethanol from sugarcane juice, syrup, and molasses, enhancing operational flexibility and profitability. This move aligns with India's goal to achieve 20% ethanol blending in petrol by 2025-26, promoting sustainable energy practices.

Source: The Financial Express