Sugar stocks went up sharply on Friday on the news of a major policy change on ethanol as the industry gears up for the next crushing season. In December 2023, a cap was imposed on the quantum of sugar that could be diverted to produce ethanol to prevent a squeeze in sugar supplies ahead of the elections.
That cap has now been removed for the period November 1, 2024-October 31, 2025, which means sugar mills can fully exploit the opportunity for ethanol blending with petrol.
The notification allows sugar mills and distilleries to produce ethanol from sugarcane
