Shares of sugar companies declined up to 7% on Monday after the government directed oil marketing companies to stop diverting sugar for ethanol production in the 2026/27 supply year. The latest ethanol tender excludes supplies made from sugarcane juice, sugar syrup and B-heavy molasses, a sugar-rich by-product of cane crushing.
In Monday’s trade, Bajaj Hindusthan Sugar led the losses, falling over 7%, followed by Shree Renuka Industries, which declined more than 6%. Balrampur Chini Mills dropped 4% and Triveni Engineering and Industries fell over 3%, while EID Parry and Dhampur Sugar shed over 2% each.
