Ethanol tender curbs trigger sharp sugar stock sell-off
after close1 source ↓machine-written, see hownot a recommendation
- BAJAJHIND close
- ₹21.25
- On the day
- -0.93%
- 52-week high
- ₹26.00
- 52-week low
- ₹14.85
Sugar stocks fell sharply on 19 Oct 2026 after the latest government ethanol procurement tender excluded supplies made from sugarcane juice, sugar syrup and B-heavy molasses. Bajaj Hindusthan Sugar led the decline, falling 5.22% to ₹20.16 in early BSE trade. Dwarikesh Sugar Industries dropped 4.45% to ₹44.28, while Shree Renuka Sugars declined 4.43% to ₹21.16. Other listed names also weakened, including Dalmia Bharat Sugar and Industries, Dhampur Sugar Mills, Balrampur Chini Mills and EID Parry India. ⚖️
The tender decision removes an important outlet for sugar mills, particularly for feedstock that can generate higher margins through ethanol production. The immediate market reaction reflects concern that mills could face weaker ethanol-linked revenue opportunities and greater dependence on the sugar market. The wider market was also weak, with the Sensex down 307.63 points, or 0.41%, at 74,421.64 in the reported session.
Key Points:
• OI Charts data for 16 Oct showed Bajaj Hindusthan at ₹21.25, down 0.9% on the day, with volume of 1.45 crore shares. The stock had still gained 4.1% over five sessions and 9.7% over 20 sessions before the policy-led sell-off.
• OI Charts data showed Shree Renuka Sugars at ₹22.15 on 16 Oct, down 0.4% that day. It had gained 2.0% over five sessions but remained down 2.9% over 20 sessions, with volume of 85.4 lakh shares.
• Bajaj Hindusthan’s 52-week range stood at ₹14.85 to ₹26.00, while Shree Renuka Sugars traded within a ₹20.95 to ₹30.82 range over the same period, according to OI Charts data.
The next market focus is the government’s ethanol procurement framework for 2026–27, including any clarification on eligible feedstocks, procurement volumes or subsequent tenders. Such details will determine whether the excluded production routes remain unavailable for the full procurement cycle or whether the policy is revised. For the sugar sector 🍬, the key watchpoint is how mills adjust product allocation between sugar and ethanol and whether the change affects reported margins in coming quarters.
Source: The Times of India, 19 Oct 2026
Not investment advice. For informational purposes only.