Sugar Stocks Soar Up to 20% as Govt Lifts Ethanol Production Cap

The sugar sector stocks have witnessed a significant surge, with some stocks rising up to 20% in early trade, following the government's decision to lift the cap on ethanol production. The move comes as part of the government's ongoing effort to promote ethanol blending in fuel while ensuring sufficient sugar availability for domestic consumption. The Department of Food and Public Distribution (DFPD) and the Ministry of Petroleum and Natural Gas (MoPNG) will conduct regular assessments to ensure a consistent availability of sugar for domestic use.

Key Takeaways:

The sugar stocks have rallied up to 20% in early trade, with Rajshree Sugars & Chemicals surging the most.
The government has lifted the cap on ethanol production, allowing sugar mills and distilleries to produce ethanol from sugarcane juice, sugar syrup, B-heavy molasses, and C-heavy molasses.
The move aims to promote ethanol blending in fuel while ensuring sufficient sugar availability for domestic consumption.
The DFPD and MoPNG will conduct regular assessments to ensure consistent sugar availability for domestic use.
Sugar production was restricted in the 2023-24 season due to expected lower production.
The government decision to lift the cap on ethanol production will create new opportunities in the sugar sector.

Statistics:

Sugar stocks have risen up to 20% in early trade.
Rajshree Sugars & Chemicals has surged the most, followed by Shree Renuka Sugars and Dhampur Sugar Mills.
The sugar sector stocks list is all green with brisk all-around buying.
The government has directed sugar mills to produce ethanol from sugarcane juice, sugar syrup, B-heavy molasses, and C-heavy molasses during the Ethanol Supply Year 2025-26.
In 2023-24, sugar production was not allowed from sugarcane syrup or juice for the production of ethanol except for B-heavy molasses.

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