Sugar and ethanol stocks have surged significantly today following news of sugar exports and a reduction in FCI rice prices for ethanol production. The majority of stocks are trading higher on Monday.
At the time of filing this report, Ugar Sugar Works Ltd (7.69%), Gulshan Polyols Ltd (7.32%), Davangere Sugar Company Ltd (6.15%), Magadh Sugar & Energy Ltd (5.97%), Sbec Sugar Ltd (4.45%), Uttam Sugar Mills Ltd (4.18%), Dalmia Bharat Sugar and Industries Ltd (3.93%), Mawana Sugars Ltd. (up 3.38%), BCL Industries Ltd (3.16%), Dwarikesh Sugar Industries Ltd (3.04%), Bajaj Hindusthan Sugar Ltd (3.06%), Shree Renuka Sugars Ltd (2.73%), Triveni Engineering & Industries Limited (2.18%), and other stocks were trading higher.
Stocks are bullish due to the news that the Indian government will allow the export of 10 lakh tonnes of sugar and has reduced the price of FCI rice for distilleries producing ethanol to Rs 2,250 per quintal, down from the previous price of Rs 2,800 per quintal.
In a major relief to sugar mills, the Indian government has decided to permit the export of 10 lakh metric tonnes (LMT) of sugar, although the official notification is yet to be released. This decision will help millers financially and also assist in clearing cane dues on time. It is also likely to boost domestic sugar prices, providing further relief to mills.
