Last Updated: August 30, 2024, 11:58 IST
Sugar Stocks Rise Today: Shares of sugar and ethanol production companies on Friday surged up to 13 per cent on BSE after the Union government announced that it will allow sugar mills to use cane juice or syrup to produce ethanol, starting November 1, 2024.
Nearly all sugar companies saw their shares rise, with Dalmia Bharat Sugar, Shree Renuka Sugar, Triveni Engineering, and Bajaj Hindusthan climbing up to 16 per cent.
So far this year, Balrampur Chini, Bajaj Hindusthan, EID Parry, Rajshree Sugars, Triveni Engineering shares jumped up to 46 per cent, as compared to benchmark Nifty 50’s 15 per cent rise.
Shares of Dalmia Bharat Sugar and Industries along with Globus Spirits also made their fresh 52-week highs of Rs 499.20 after rising 13 per cent and Rs 1,019.15 after surging 13.2 per cent respectively.
Other sugar company stocks that witnessed a surge in their share price were Dhampur Sugar Mills, Mawana Sugars, Rajshree Sugars & Chemicals and Dwarikesh Sugar Industries. The shares of these companies were also up by 7-9 per cent in an early trading session on BSE.
The policy shift announced in a notification on August 29, 2024, removes the previous cap on sugar diversion for ethanol.
In addition to cane juice and syrup, the new policy permits the use of B-Heavy molasses and C-Heavy molasses for ethanol production. According to the Ministry of Consumer Affairs, Food and Public Distribution, “Sugar mills and distilleries are allowed to produce ethanol from sugarcane juice/sugar syrup, B-Heavy molasses as well as C-Heavy molasses during ESY 2024-25 as per the agreement with OMCs.” This adjustment is intended to support the government’s goals of increasing renewable energy usage and reducing dependence on fossil fuels.
The government has also authorized distilleries to purchase up to 2.3 million metric tons of rice from the Food Corporation of India specifically for ethanol production. This measure is aimed at boosting ethanol output and supporting the broader strategy of blending ethanol with fuels.
To ensure this shift doesn’t impact domestic sugar availability, the Department of Food and Public Distribution and the Ministry of Petroleum and Natural Gas will work together to monitor and review the diversion of sugar to ethanol production.
This policy change is part of the government’s broader effort to enhance ethanol production and promote sustainable energy practices. By allowing a wider range of sugar derivatives for ethanol production, the government aims to improve the efficiency and flexibility of the ethanol supply chain while maintaining stable domestic sugar supplies.
Disclaimer:Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.