New Delhi, Sept. 2 -- 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 Shree Renuka Sugars, 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 12% 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 suffici...