Mumbai, Sept. 2 -- The move is expected to boost revenues for sugar firms with higher ethanol blending capacities, lifting investor sentiment across the sector.

Rajshree Sugars & Chemicals hit the upper circuit with a 20% jump, while Dhampur Sugar Mills climbed 11.55%, Shree Renuka Sugars rose 12.47%, Uttam Sugar Mills gained 10.88%, and Dwarikesh Sugar Industries advanced 10.12%. Avadh Sugar & Energy was up 9.30%, Bajaj Hindusthan Sugar gained 6.79%, Balrampur Chini Mills rose 6.77%, Praj Industries advanced 6.06%, and Triveni Engineering & Industries added 4.57%.

The policy change, announced on 1 September 2025, reverses restrictions imposed during the 2023-24 ethanol supply year, when the government had limited diversion of sugarcane...