Sugar stocks rally after ethanol price hike buzz
On August 13, 2024, sugar stocks saw significant gains despite a weak overall market, driven by reports that the government might increase ethanol prices for the November 2024 season. This potential price hike aims to boost ethanol production and align with blending targets. A committee is reviewing the proposal, which would link price adjustments to the fair and remunerative price for sugarcane. Notable stock movements included Triveni Engineering (+8.6%), Bajaj Hindusthan Sugar (+6.4%), and Balrampur Chini (+5.4%).
New Delhi: Sugar stocks surged on Tuesday, August 13, 2024, despite a generally weak market, as reports emerged that the government may increase ethanol prices for the upcoming season starting in November 2024.
According to report, the price revision is being prioritized to encourage ethanol production and meet the government’s blending targets. A committee, headed by a joint secretary in the Ministry of Petroleum, has already had a preliminary round of consultations on the proposal. If everything goes well, the increase in ethanol prices would be linked to the fair and remunerative price for sugarcane.
Some of the sugar stocks surged considerably in response to these developments. Triveni Engineering and Industries soared 8.6 per cent to ₹424 per share, Bajaj Hindusthan Sugar by 6.4 per cent to ₹41.64, Balrampur Chini by 5.4 per cent to ₹522.6, KCP Sugars and Industries by 5.1 per cent to ₹49.98, and Shree Renuka Sugars by 4.5 per cent to ₹48.2.
Source Link : https://www.chinimandi.com/sugar-stocks-rally-after-ethanol-price-hike-buzz/
Recommended for you
