Key players in the sector, including Shree Renuka Sugars, Dhampur Sugars, and Balrampur Chini Mills, were among the top gainers.
The blend ratio targeted is 20 per cent (80 percent petrol with 20 per cent ethanol) for Nov '24-Oct '25, up from an estimated 14 per cent in Nov '23-Oct 24
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
Sugar stocks, Ethanol price hike news: The price revision is being considered on priority to incentivise production and meet our blending goals, reports said
EID Parry in its FY24 annual report said, operating profitability is expected to improve in FY25 and would remain rangebound, due to better profitability from sugar business.
Higher sugar realization and better feedstock mix within the distillery segment should improve profitability in H1FY25 even as volume may be lower, believe analysts at Elara Capital.
According to reports, a senior Government official stated that the revision is likely to apply to the next sugar season and not the ongoing one
Analysts expect lower output to keep sugar prices elevated at least for the next year, driving gains for the sector
Dalmia Bharat said the outlook for the FY2023-24 seems stable as there will be less pressure on stock levels and the company can expect improved profitability and realizations
Significant optimism has returned to the sugar sector due to seasonal factors (festival period), and growing concerns on India's sugar production estimate for the upcoming season
Sugar prices rose to a six-year high on Tuesday, amid concerns over a deficient monsoon.
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The incremental tailwind is expected from attractive international prices, which could catalyse a positive in sugar realizations, Dwarikesh Sugar said in its financial year 2022-23 annual report.
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Analysts see 15-20 per cent upside in companies like Balrampur Chini, Dhampur, Triveni and EID
Sugar prices in India have also climbed more than 6 per cent in the past two weeks
India's sugar production fell 3 per cent to 29.9 million tonnes (MT) in the first six months of the 2022 23-marketing year ending September, according to industry body ISMA.
India has a cushion to export an additional 1 million tonnes of the sweetener if the domestic output reaches an estimated 33.6 million tonnes this year