US-Iran war, March 15 -- Amid the ongoing US-Iran war, sugar stocks have remained in focus as rising crude oil prices make Indian sugar companies more attractive, given the government's push for ethanol blending.

On Friday, sugar stocks declined by as much as 5%, with Avadh Sugar & Energy and Balrampur Chini Mills emerging as the top laggards. They were followed by nearly 4% losses in Dalmia Bharat Sugar and Industries and Dhampur Sugar Mills.

A rise in oil prices is expected to accelerate the shift toward ethanol production, as major sugar-producing nations such as Brazil may divert more sugarcane toward ethanol instead of sugar manufacturing.

If such a transition occurs, sugar supplies in the market could tighten, potentially pushing...