Sugar stocks are back in the limelight today, March 17. If we check the list of sugar sector stocks, the share price of Rajshree Sugars, Gayatri Sugars, Shree Renuka Sugars, Bajaj Hindusthan, EID Parry and Mawana Sugars saw as much as 3% gains in intra-day trade today.
The surge in the share price of these companies came after a fresh policy update from the government. Another reason adding to this is the improving expectations around ethanol demand and global energy trends.
Breaking down the stocks, in the intra-day trade, Rajshree Sugars & Chemicals gained over 3% during the session. Similarly, Gayatri Sugars rose more than 2.5%.
Furthermore, the share price of Shree Renuka Sugars and Bajaj Hindusthan Sugar also moved higher by over 1%. EID Parry (India) saw gains close to 3%, while Mawana Sugars traded with moderate upside.
Let’s take a look at what is driving the momentum in these stocks –
Fresh export quota
One of the key factors behind the surge in sugar stocks in today’s trading session is the government’s decision on exports. The authorities have approved an additional 87,587 tonnes of sugar for export in the 2025-26 marketing year.
This recent development gives sugar mills a clear guideline on how much they can sell overseas. Moreover, it also provides some visibility on managing excess stock and planning shipments for the coming months.
Now for the sugar companies, export opportunities can help manage excess supply and support prices.
Ethanol demand expectations support outlook
Rising demand for ethanol is another reason why the sugar stocks are in focus.
Ethanol, made from sugarcane, is blended with petrol as a cleaner fuel alternative.
According to market watchers, disruptions in crude oil supply amid the ongoing geopolitical tension in the Middle East have increased interest in alternative energy sources.
This in simple terms means that higher ethanol demand helps sugar companies by giving them another source of income besides selling sugar.
Clear export rules bring visibility
The government has also laid out clear rules for sugar exports, which has reduced uncertainty for companies. Mills have been asked to complete a large part of their export quota by June 30, 2026. Those who meet the required threshold will be allowed to export the remaining quantity by September 30, 2026.
Conclusion
The sugar stocks have been in focus ever since the beginning of the Middle East crisis. As the tension continued to escalate and crude prices surged, domestic sugar sector manufacturers have been hoping for higher ethanol demand to offset the impact. Additionally, the higher exports quota adds to the optimism about topline growth.