Overview

• A government notification allows ethanol production from sugarcane juice, sugar syrup, and both B-heavy and C-heavy molasses without quantitative limits for the 2025–26 ethanol supply year starting November 1.
• The move reverses curbs in the current year that restricted use of cane juice and syrup because of tight sugarcane availability.
• Sugar shares rallied in early trade, with several counters posting double-digit gains, including Shree Renuka Sugars up 14%, Dhampur Sugar up 11.5%, and Balrampur Chini Mills up about 7%, while some stocks rose as much as 20% according to market reports.
• The Department of Food and Public Distribution, working with the petroleum ministry, said it will periodically review sugar diversion to ethanol to ensure adequate domestic sugar supply through the year.
• Investors also took note of the Supreme Court dismissing a plea against nationwide 20% ethanol-blended petrol, easing a legal overhang referenced in market commentary.