Analysts note the policy change may alleviate sugar surpluses and boost ethanol blending. Retail sentiment has shifted to a bullish stance on Balrampur Chini, indicating strong interest in sugar stocks.
Sugar stocks rallied sharply in morning trade on Tuesday after the government lifted restrictions on ethanol production for the upcoming 2025–26 supply year. The Ministry of Consumer Affairs, Food & Public Distribution announced that sugar mills and distilleries will now be allowed to produce ethanol from sugarcane juice, syrup, and all types of molasses without any quantitative limit, starting November 1.
SEBI-registered analyst Akhilesh Jat noted that this move marks a reversal from the current year’s curbs, which were imposed due to lower sugarcane availability. It is expected to support mills’ profitability, alleviate concerns about sugar surpluses, and boost ethanol blending targets, he added
The announcement triggered a strong rally across sugar counters: Shree Renuka surged over 16%, Balrampur Chini rose 8%, Andhra Sugar climbed more than 6%, and Avadh Sugar soared over 10%.
Balrampur Chini: Trading Strategy
Analyst Prabhat Mittal shared the technical outlook for Balrampur Chini. He noted that in a falling market, the stock exhibited accumulation signs in February 2025. After that, it formed a higher top and a higher bottom in the medium-term chart until the first week of June.
In the short-term chart, the stock is finding support on the trendline, and on the upside, it is encountering resistance on the trendline. Overall, the sugar sector looks sluggish, according to Mittal. He advised traders to use the strategy of buying on dips and selling on rises for sugar stocks.
For Balrampur Chini, he advised traders to wait and buy the stock at ₹540-₹545 near the trendline support, with a strict stop loss below ₹509. Alternatively, they could wait for a breakout above ₹630, targeting ₹740 and ₹750.
What Is The Retail Mood?
Data on Stocktwits shows that retail sentiment turned from ‘neutral’ to ‘bullish’ on Balrampur Chini a day ago.
Balrampur Chini shares have risen 8% year-to-date (YTD).
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