Sweet Surge: Sugar Stocks Rally as Govt Lifts Ethanol Production Curbs

Sugar stocks rallied sharply in morning trade on September 2, 2025, after the government lifted restrictions on ethanol production for the upcoming 2025–26 supply year. The Ministry of Consumer Affairs, Food & Public Distribution announced that sugar mills and distilleries will now be allowed to produce ethanol from sugarcane juice, syrup, and all types of molasses without any quantitative limit, starting November 1. This marks a reversal from the current year’s curbs, which were imposed due to lower sugarcane availability. The move is expected to support mills’ profitability, reduce sugar surplus concerns, and boost ethanol blending targets. The announcement triggered a strong rally across sugar counters:

surged over 16%, jumped 7.8%, Andhra Sugars climbed more than 6%, and Avadh Sugar soared over 10%. ________________________________________ 📌 Disclaimer: This content is for information only and not investment advice. Investments in securities market are subject to market risks. Read all the related documents carefully before investing. Please consult a SEBI-registered advisor before making any investment decisions.