 "Sugar stocks rally after government fixes ethanol price for OMCs")
Shares of sugar companies have rallied by up to 13% on the bourses after the government fixes a price of Rs 48.50-49.50 per litre for procurement of ethanol for blending with petrol.
The Cabinet Cabinet Committee on Economic Affairs (CCEA) fixed the delivered price of Ethanol in the range of Rs 48.50 per litre to Rs 49.50 per litre, depending upon the distance of sugar mill from the depot/installation of the public sector oil marketing companies (OMCs), the PTI report suggests.
The rate fixed by the government is much higher than the price oil companies presently pay to buy the sugarcane extract. Oil firms presently pay about Rs 29/litre for ethanol, added report.
Simbhaoli Sugars has rallied 13% at Rs 16 on BSE, followed by Bajaj Hindusthan (8% at Rs 22.75), Shree Renuka Sugars (7.8% at Rs 18.15), Balrampur Chini Mills (up 7.5% at Rs 63.05) and Dhampur Sugar Mills (6.6% at Rs 48.65). The benchmark S&P BSE Sensex was down 0.44% at 27,709 at 0924 hours.
The Cabinet Cabinet Committee on Economic Affairs (CCEA) fixed the delivered price of Ethanol in the range of Rs 48.50 per litre to Rs 49.50 per litre, depending upon the distance of sugar mill from the depot/installation of the public sector oil marketing companies (OMCs), the PTI report suggests.
The rate fixed by the government is much higher than the price oil companies presently pay to buy the sugarcane extract. Oil firms presently pay about Rs 29/litre for ethanol, added report.
Simbhaoli Sugars has rallied 13% at Rs 16 on BSE, followed by Bajaj Hindusthan (8% at Rs 22.75), Shree Renuka Sugars (7.8% at Rs 18.15), Balrampur Chini Mills (up 7.5% at Rs 63.05) and Dhampur Sugar Mills (6.6% at Rs 48.65). The benchmark S&P BSE Sensex was down 0.44% at 27,709 at 0924 hours.