New Delhi, 30th August (PTI): On Friday, investors showed keen interest in sugar stocks after the government approved the use of cane juice and sugar syrup for the 2024-25 ethanol supply year.
Shares of Triveni Engineering & Industries rose by 7.62%, Dhampur Sugar Mills by 7.55%, Avadh Sugar & Energy by 7.20%, and Dalmia Bharat Sugar & Industries by 5.79% on the BSE.
Shares of Shree Renuka Sugars increased by 5.38%, Praj Industries by 5.33%, Dwarikesh Sugar by 3.77%, and Balrampur Chini Mills by 3.46%.
“This surge follows the government’s decision to allow ethanol production from cane juice or syrup,” said Avdhut Bagkar, Technical and Derivatives Analyst at Stoxbox.
On Thursday, the government approved the use of cane juice and sugar syrup for ethanol production for the 2024-25 ethanol supply year, lifting the ban that had been in place since last year.
In December 2023, the government had imposed a ban on using cane juice or sugar syrup for ethanol production during the 2023-24 ESY (December-November) to ensure sufficient domestic sugar supply and to keep prices under control.
“Sugar mills and distilleries have been allowed to produce ethanol from cane juice/sugar syrup, B-heavy molasses, and C-heavy molasses for the 2024-25 ESY, based on agreements/allotments with oil marketing companies,” stated the Food Ministry’s order.
The Food Ministry and the Ministry of Petroleum and Natural Gas will regularly review the country’s sugar production and marketing for ethanol production to ensure that sugar remains available for domestic use throughout the year, they added.
