Bengaluru, April 22 -- Sugar stocks gained up to 5% after the government signalled plans to move toward 100% ethanol blending. Higher ethanol demand is expected to boost revenues, improve margins, and strengthen long-term growth prospects for the sector.

The push toward 100% ethanol blending is expected to significantly boost demand for ethanol, a key byproduct of sugar production. This creates a strong additional revenue stream beyond traditional sugar sales, improving profitability and reducing reliance on cyclical sugar prices.

Moreover, increased policy support for ethanol and alternative fuels strengthens long-term growth visibility for the sector. As India moves toward energy self-reliance, these companies are likely to benefit fr...