Shares of sugar makers gained 2% to 8% after the government removed the cap on sugar diversion for ethanol production for ESY (Ethanol Supply Year - December to November) 2024-25.
Triveni Engineering & Industries (up 8.35%), Shree Renuka Sugars (up 6.06%), Balrampur Chini Mills (up 3.17%) and E.I.D. Parry (India) (up 2.69%) advanced.
Further, Dalmia Bharat Sugar and Industries (up 7.19%), Bannari Amman Sugars (up 6.72%), Bajaj Hindusthan Sugar (up 5.47%) and Piccadily Agro Industries (up 3.03%) rose in trade today.
Concurrently, Zuari Industries (up 8.71%), Avadh Sugar & Energy (up 6.21%), Dhampur Sugar Mills (up 6.53%), Magadh Sugar & Energy (up 4.92%), Dwarikesh Sugar Industries (up 4.56%), Uttam Sugar Mills (up 4.07%) and DCM Shriram Industries (up 3.10%) also edges higher.
Meanwhile, the S&P BSE Sensex rose 251.52 points or 0.31% to currently trade at 82,386.13.
As per the latest notification released by the government, sugar mills and distilleries can produce ethanol from sugarcane juice/sugar syrup, B-Heavy molasses, as well as C-Heavy molasses, during ESY2024-25 as per their agreements with oil marketing companies.
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This policy update lifts the previous cap on using sugar for ethanol production. Now, in addition to cane juice and syrup, mills can also use B-Heavy and C-Heavy molasses to produce ethanol. This change is part of the government's strategy to boost renewable energy use and reduce reliance on fossil fuels.
The government has also reportedly allowed distilleries to buy up to 2.3 million metric tons of rice from the Food Corporation of India specifically for ethanol production, aiming to increase ethanol output and support the broader fuel blending initiative.
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