Sugar & distillery stocks high

The Govt yesterday made things sweet for the sugar industry. It allowed sugar mills to use cane juice or syrup to produce ethanol for the Ethanol Supply Year (ESY) 2024-25, beginning November 1, 2024. This removes the previous limit on the amount of sugar that could be diverted for ethanol production.

The Govt also allows the use of B-Heavy and C-Heavy molasses for ethanol production.

The Govt also allowed distilleries to buy up to 2.3 million metric tons of rice from the Food Corporation of India, exclusively for ethanol production, aimed at increasing ethanol output  to aid blending ethanol with fuels, thereby  boosting renewable energy use and decreasing reliance on fossil fuels.

Following this development, sugar and distillery stocks are up, with Dalmia Bharat hitting a new high at Rs.495.95, Globus Spirits also hitting a new high at Rs.1025, Triveni too hit a new high with Praj Inds, Shree Renuka also figuring among the top five gainers on the markets today.