Why are sugar stocks rising today? Shares of sugar companies were in an uptrend today, defying the broader market sell-off amid escalating tensions in West Asia, which have now entered their fifth week.
Almost all sugarcane processing companies significantly outperformed the broader market, with Dalmia Bharat Sugar & Industries emerging as the top gainer around 1 PM. Dalmia Bharat Sugar shares were trading with a gain of 12 per cent at ₹386.85, while Dwarikesh Sugar Industries shares climbed 11 per cent to ₹46.66 on the National Stock Exchange.
Other sugar counters, such as Dhampur Bio Organics, surged 8 per cent to ₹114.56, while Dhampur Sugar Mills was up 7.5 per cent at ₹143.65. Shree Renuka Sugars rose 6 per cent to ₹28.10, followed by Avadh Sugar & Energy and Uttam Sugar Mills, which were up more than 3 per cent each at ₹467 and ₹244, respectively.
Today’s rally in sugar stocks was largely driven by a spike in crude oil prices. Brent crude surged more than 3 per cent to $116.5 per barrel, nearing its recent highs of $119. The US West Texas Intermediate (WTI) moved above $100 to quote at $102 per barrel.
Deepak Jasani, an independent market expert, said that rising crude oil prices have sparked renewed interest in sugar stocks because investors are speculating an increase in demand for ethanol, which is used in petrol and diesel. Since ethanol is mainly produced from sugar and its byproducts, this has fueled a surge in sugar stocks.
Ethanol is made from sugarcane, maize, or grain. It is renewable, domestically produced and has cleaner burning than pure petrol.
India has been aggressively pushing ethanol blending in petrol to cut crude oil imports, save foreign exchange, reduce emissions, and support farmers. Back in July 2025, India achieved its target of 20 per cent ethanol blending with petrol five years ahead of schedule.
Addressing a public event on Saturday (March 28), Prime Minister Narendra Modi expressed gratitude to sugarcane farmers, saying ethanol produced from their crop has helped reduce India’s dependence on crude oil imports. He said that without increased ethanol production and its blending with petrol, the country would have had to import an additional 4.5 crore barrels of crude oil annually.
He noted that the initiative has helped save about Rs 1.5 lakh crore in foreign exchange.
Meanwhile, the Petroleum Industry has urged industry players to develop ethanol as a clean cooking fuel for households as part of efforts to reduce dependence on imported LPG and expand biofuel use.
Source link
#Sugar #stocks #Dalmia #Bharat #Dwarikesh #Sugar #rally #heres
