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New Delhi: Shares of sugar companies saw a significant rise today. The hike in stock price is followed by comments from India’s Food Minister Pralhad Joshi, which helps in boosting investor sentiment. The minister revealed that the government is considering increasing ethanol prices for the 2024-25 season, along with reviewing the minimum selling price (MSP) of sugar and sugar exports for the same period.
Speaking at the India Sugar and Bio-Energy Conference, Joshi mentioned that a committee of secretaries is currently evaluating a proposal to raise the MSP of sugar, which has remained unchanged at Rs 31 per kg since February 2019.
Sugar Stocks
This news sparked a rally in sugar stocks, with Shree Renuka Sugars leading the pack with an 8 per cent jump, followed by Balrampur Chini Mills and Bajaj Hindusthan Sugar, both gaining 6 per cent. Mawana Sugars increased by 5.6 per cent, while KM Sugar Mills saw a 5 per cent rise.
Other sugar stocks, including Avadh Sugar & Energy, Dalmia Bharat Sugar and Industries, Magadh Sugar & Energy, Rajshree Sugars & Chemicals, Dwarikesh Sugar Industries, Simbhaoli Sugars, KCP Sugar & Industries, Dhampur Sugar Mills, Sakthi Sugars, and Ugar Sugar Works, also recorded gains between 4 per cent and 5 per cent.
Ethanol Prices
The sugar industry has been pushing for an MSP increase and a hike in ethanol prices. Currently, ethanol made from cane juice is priced at Rs 65.61 per litre, while ethanol from B-Heavy and C-Heavy molasses is priced at Rs 60.73 and Rs 56.28 per litre, respectively. Ethanol prices have not been revised since the 2022-23 supply year (November-October).
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Government Decision To Lift Restriction
In August, the government lifted restrictions on using sugarcane juice, sugar syrup, and B-molasses for ethanol production in the 2024-25 ethanol supply year (ESY), which is expected to improve ethanol sales and ease the high inventory levels of sugar mills.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. Times Now Digital suggests its readers/audience to consult their financial advisors before making any money related decisions.)
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