Sugar Stocks Get A Sweet Punch In Last Five Days Amidst Increase In Demand For Ethanol
Riding high on the hopes of a rise in retail prices of sugar following the global trend and the increasing demand for ethanol, prices of Sugar companies rallied well in the stock markets on Wednesday.
The boom in the share prices of sugar companies was evident on Wednesday. Balrampur Chini Mills is up by 0.30 per cent at Rs 401.85, while Dhampur Sugar Mills gained 8.09 in the last five days and on Thursday morning was at Rs 231.20. Mawana Sugars did see a bit of decline on Thursday morning, but in the last one month it has gained by 10.60 per cent.
Rana Sugars saw a gain of 15.24 per cent in the last five days, Birla’s Avadh Sugar gained 11.43 per cent in the last five days, KCP Sugar and Industries Corp saw a gain of 10.31 per cent in the same period, Simbhaoli Sugar saw a surge of 7.99 per cent in last five trading days, Dwarikesh Sugar gained 11.70 per cent in the same period,
Shree Renuka Sugars gained 9.46 per cent in 5 days, Dalmia Bharat gained 9.20 per cent in the same duration. However, Thursday morning did see a decline in most of these stocks.
According to the statistics of the Indian Sugar Mills Association, India’s sugar production rose at about 2.8 per cent to 228 lakh tonnes till 15 February 15 of the ongoing marketing year. In Uttar Pradesh, sugar production rose marginally to 61 lakh tonnes from 59 lakh tonnes, while in Maharashtra it was down marginally at 85 lakh tonnes from 86 lakh tonnes.
As per reports, the centre has indicated already that it plans to create a buffer of ethanol stock in anticipation of a rise in E20 fuel. E20 is the blend of 20 per cent ethanol with petrol and in recent times, it has seen a surge in demand. For this financial year, about 5 million tonnes of sugar is estimated to be diverted for ethanol production, higher than 3.6 million tonnes in FY22.
Media reports say that India, which is the second largest sugar producing country in the world, has a cushion to export an additional 1 million tonnes of sugar after the domestic output reaches an estimated 33.6 million tonnes this year.
Sugar production is estimated to be 34 million tonnes in SS 2022-23. According to the Indian Sugar Mills Association, the highest-ever diversion towards ethanol is estimated at 45 lakh tonnes, which is higher by 41 per cent y-o-y.
