The rally was led by Shree Renuka Sugars (up 13%), Dhampur Sugar Mills (11%), Dwarikesh Sugar Industries (9%), Balrampur Chini Mills (6%), Bajaj Hindusthan Sugar (8%), Avadh Sugar & Energy (8%), Uttam Sugar Mills (11%), and Rana Sugars (9%), among others that caught investor attention.
The government has removed all curbs on ethanol production from sugarcane juice, sugar syrup, and both B-heavy and C-heavy molasses for the 2025-26 sugar season.
This is a significant relief for the sugar industry. Sugar mills will now be able to use inventory of B-heavy molasses. It will help achieve target of boosting the proportion of the fuel in gasoline blends to 20%.
At the same time, authorities will periodically review how much sugar is diverted for ethanol production to ensure sufficient supply remains available for domestic consumption.
The world’s second-biggest sugar producer had restricted production in the current marketing year because of a drop in sugarcane supplies.
In the new ethanol supply year starting from November 1, sugar mills and distilleries are allowed to produce ethanol without any quantitative restriction, the Ministry of Consumer Affairs, Food & Public Distribution said.
In the new season, sugarcane supplies are expected to jump as ample monsoon rains for two straight years have helped farmers to expand area under the crop.
“This is a welcome move. The government should also raise the ethanol procurement price so that mills can pay farmers the government-fixed cane price,” a sugar miller was quoted as saying by Reuters.
Sugar mills such as EID Parry, Balrampur Chini Mills, Shree Renuka, Bajaj Hindusthan and Dwarikesh Sugar have increased their ethanol production capacity in the last few years.
India, the No.3 oil importer and consumer of petroleum products, aims to increase the blending of ethanol into gasoline to 20% by 2025/26.
With agency inputs
