Sugar stocks surge today amid buzz of likely ethanol price hike
Sugar stocks surged as the Union Cabinet is likely to approve ethanol price hikes, boosting sector profitability. Key gainers included Dhampur Sugar Mills (+5.63%) and Dwarikesh Sugar Industries (+5.16%). Prices for ethanol from B-heavy molasses and sugarcane juice may rise, alongside regularized incentives for C-heavy molasses, supporting India’s ethanol blending targets and enhancing industry growth.
Sugar stocks are in focus today following news of a likely ethanol price hike. The majority of sugar stocks are trading higher on Thursday.
At the time of filing this report, Dhampur Sugar Mills Ltd. (up 5.63%), Magadh Sugar & Energy Ltd. (up 5.42%), Dwarikesh Sugar Industries Ltd. (up 5.16%), Uttam Sugar Mills Ltd. (up 4.97%), Davangere Sugar Company Limited (up 4.73%), Dalmia Bharat Sugar and Industries Ltd. (up 4.67%), Shree Renuka Sugars Ltd. (up 4.10%), Rana Sugars Ltd. (up 3.97%), Bajaj Hindusthan Sugar Ltd. (up 3.87%), Mawana Sugars Ltd. (up 3.84%), Triveni Engineering & Industries Limited (up 2.73%), and others were among the top gainers.
According to various media reports, the Union Cabinet is expected to approve a proposal to increase ethanol prices during its meeting today. The price of ethanol produced from B-heavy molasses is set to rise. Similarly, the price of ethanol produced from sugarcane juice is also anticipated to increase.
The Cabinet may also regularize the incentives offered by Oil Marketing Companies (OMCs) for ethanol produced from C-heavy molasses. Previously, OMCs had set incentives of Rs 6.87 per liter for ethanol made from C-heavy molasses for the 2023-24 season. These incentives are expected to be regularized for the ESY 2024-25.
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Source : Chinimandi
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