On the bourses, shares of sugar-producing companies tumbled as much as 6 per cent, leaving investors concerned about the impact of the latest move on growth.
Share price of Balrampur Chini Mills, one of the largest sugar producers in India, surged 13% to ₹738 on the BSE on the back of three-fold jump in the average trading volume.
The sector's near-term performance will continue to be influenced by sugar pricing trends, cane availability-cum-recovery levels, ethanol pricing mechanisms and policy direction, said Balrampur Chini.
Dwarikesh Sugar Industries was the top laggard, falling 7.2 per cent, followed by Dalmia Bharat, which fell 6.4 per cent intra-day and Balrampur Chini Mills, which fell over 5 per cent on Friday.
Sugar Stocks Today: Thus far in August 2026, the market price of Avadh Sugar zoomed 51%, while Uttam Sugar, Dalmia Bharat, Dwarikesh, Dhampur, Triveni and Bajaj Hind soared in the range of 26-38%.
Balrampur Chini Mills, Triveni Engineering Industries, Dwarikesh Sugar Industries and Shree Renuka Sugars were up in the range of 3 per cent to 5 per cent in Thursday's intra-day trade.
Indian sugar prices hit a record high as tight supplies and rising festival demand fuel gains, raising inflation concerns and boosting sugar mill margins
According to a Ministry of Finance notification, the government has removed excise duty on petrol blended with ethanol content of 22% (E22), 25% (E25), 27% (E27), and 30% (E30).
Sugar stocks including, Dwarikesh Sugar, and Balrampur Chini fell up to 4 per cent in trade after the government prohibited sugar exports with immediate effect until September 30.