In a significant boost for the sugar industry, the Indian government has removed the cap on sugar diversion for ethanol production for the 2024-25 season. This policy change allows sugar mills to produce ethanol from sugarcane juice and B-Heavy molasses, enhancing their operational flexibility and potential profitability.The announcement has led to a surge in sugar stocks, with notable gains observed across major players in the sector:
- Balrampur Chini Mills (BALRAMCHIN): The stock rose by ₹44.50, or 7.69%, trading at ₹623.30 at 9:15 AM.
- Shree Renuka Sugars (RENUKA): Shares increased by ₹3.69, or 7.78%, reaching ₹51.10 at 9:16 AM.
- Triveni Engineering & Industries (TRIVENI): The stock saw a rise of ₹22.50, or 5.12%, trading at ₹461.60 at 9:17 AM.
This policy shift is expected to enhance the profitability of sugar mills by allowing them to divert more sugar towards ethanol production, which is increasingly seen as a sustainable alternative to fossil fuels. The government’s decision aligns with its broader goals of promoting renewable energy and reducing dependence on traditional fuels.
Market analysts anticipate that this development will not only improve the financial outlook for sugar companies but also attract further investments into the sector. As the government collaborates with the Ministry of Petroleum and Natural Gas to monitor the implementation of this policy, stakeholders in the sugar industry are optimistic about the future growth prospects.
