Balrampur Chini, Dhampur Sugar: Sugar stocks hit the roof as govt reverses ban on use of sugarcane juice to make ethanol
Sugar stocks today: At around 9:32 a.m., shares of Dhampur Sugar Mills were up over 7 per cent, Balrampur Chinni Mills and Shree Renuka Sugars were up over 6 per cent.
Sugar stocks today: Sugar stocks got sweeter in the morning deals on Monday, December 18, and jumped in the range of 4 per cent to 7 per cent. The upward trend in the sugar pack came after the government opted to permit the diversion of cane juice and B-heavy molasses for ethanol production.
At around 9:32 a.m., shares of Dhampur Sugar Mills were up over 7 per cent, Balrampur Chini Mills and Shree Renuka Sugars were up over 6 per cent, Mawana Sugars and Dalmia Bharat Sugar and Industries were up over 5 per cent, Rajshree Sugars hit the upper circuit of 5 per cent and Triveni Engineering was up over 4 per cent.
On Friday, December 15, the government lifted the ban on making ethanol from sugarcane juice and B-heavy molasses for the 2023–24 marketing year, which started on October 1. They decided to allow sugar mills to divert up to 1.7 million metric tonnes of sugar for ethanol production as New Delhi aims to reduce disruptions in its ambitious biofuel programme.
As the world's second-biggest sugar producer, India had previously directed sugar mills not to use cane juice or syrup for ethanol due to concerns over production in states like Maharashtra and Karnataka due to less rainfall.
The government's move will assist the industry, which has invested billions of dollars over the last five years to boost ethanol production capacity, said a senior industry official, also preferring anonymity.
Sugar stocks' performance
In 2023 so far, Dhampur Sugar Mills has gained over 7 per cent, Dalmia Bharat Sugar has given over 8 per cent returns, Balrampur Chini Mills has risen over 1 per cent, and Mawana Sugars has risen 0.05 per cent.
Conversely, Dwarikesh Sugar has slipped over 13 per cent and Shree Renuka Sugars has declined by over 15 per cent.
In the same period, the Nifty50 has risen 18 per cent.
Catch the latest stock market updates here. For all other news related to business, politics, tech, sports and auto, visit Zeebiz.com.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Power of Compounding: How many years will it take to reach Rs 3 crore corpus if your monthly SIP is Rs 4,000, Rs 5,000, or Rs 6,000
Power of Compounding: Salary Rs 25,000 per month; is it possible to create over Rs 2.60 crore corpus; understand it through calculations
Reduce Home Loan EMI vs Reduce Tenure: Rs 75 lakh, 25-year loan; which option can save Rs 25 lakh and 64 months and how? Know here
Top 7 Large and Mid Cap Mutual Funds with Best SIP Returns in 5 Years: No. 1 fund has turned Rs 15,000 monthly SIP investment into Rs 20,54,384; know about others
New Year Pick by Anil Singhvi: This smallcap stock can offer up to 75% return in long term - Check targets
01:58 PM IST