Sugar stocks turn sweet

On 7th Dec’23, the Govt had issued a ban of usage of sugarcane juice or sugar syrup for ethanol production in the ethanol supply year (ESY) 2023–24.

And this order was reversed. A new order was passed by the Food Ministry, removing the ban, allowing both sugarcane juice and B-heavy molasses for green fuel production in the 2023–24 supply year.

Following this reversal of order, sugar stocks are rejoicing and lead the gainers. Bajaj Hindusthan rose 7%, so did Shree Renuka Sugars; Balrampur Chini rose 6% and Dalmia Bharat Sugar also rose 6%. Uttam Sugar rose 6.5%.

Praj Industries, which is the leading supplier of ethanol plants, is also understandably up in the green; the stock rose 8.5% to hit an intraday high at Rs.587.95.