Bajaj Hindusthan fell 5.22% to ₹20.16 on the BSE, the sharpest move in the sugar space. Dwarikesh Sugar Industries slid 4.45% to ₹44.28, Renuka Sugars fell 4.43% to ₹21.16, Dalmia Bharat Sugar dipped 3.24% to ₹466, Dhampur Sugar Mills 2.81% to ₹191.90, Balrampur Chini Mills 2.55% to ₹704.35, and EID Parry India 1.57% to ₹683.75.\n
The decline followed a tender issued by BPCL on Oct 16, which barred supplies of sugar‑based ethanol for the 2026‑27 cycle, redirecting 11 billion litres of demand to grain‑based feedstocks.\n
The ban removes a high‑margin outlet for sugar mills, as ethanol from sugarcane juice, sugar syrup and B‑heavy molasses is no longer eligible. This shift is expected to tighten margins and pressure valuations in the sector.\n
The move comes amid concerns over a tight sugar supply, with poor monsoon in Maharashtra and Karnataka threatening output. The government’s effort to balance domestic prices and the ethanol blending programme underscores the policy trade‑offs.\n
On the broader market, the BSE Sensex fell 307.63 points to 74,421.64, and the Nifty 50 dipped 81.30 points to 23,096.80, reflecting a cautious mood.\n
Looking ahead, traders will watch the tender’s bid receipts for grain‑based ethanol and the sugar sector’s earnings releases next quarter for clues on how the policy shift will play out.