Sugar stocks trade mixed as FM give a miss to sector in Budget speech
Sugar stocks traded mixed on February 1 after the Finance Minister Nirmala Sitharaman did not mention any concession demanded by the sugar industry in her speech.
While EID Parry was trading with gains of over 5 percent, Balrampur Chini Mills, Shri Renuka Sugars and Bajaj Hindusthan fell as much as 3 percent.
In December 2023, the government allowed – after banning briefly – utilisation of sugarcane juice as well as B-heavy molasses to produce ethanol but capped the diversion of sugar till the end of the 2023-24 sugar season, which is in September this year.
Government had also recently announced an incentive for ethanol made from maize, signalling that it does not favour diverting large quantities of sugarcane to produce ethanol. Diversion of sugarcane’s sucrose for ethanol production can lead to rise in sugar prices, which won’t be an outcome the government desires in an election year……
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