The move will help India cut oil import bills and help reduce carbon emission in cities. A gazette notification by the oil ministry directed oil companies to sell 20% ethanol-blended petrol as per the specifications set by the Bureau of Indian Standards, which would come into effect from April 2023.
Shares of KM Sugar rallied 20 per cent to Rs 23.40, while
Sugars soared 16 per cent to Rs 384.8. Dharani Sugars, , Dharani Sugars & Chemicals and Rana Sugars gained 10 per cent each, which was the circuit limit for these counters.
Uttam Sugar Mills, Avadh Sugar, Magadh Sugar, Dwarikesh Sugars, KCP Sugar & Industries and Indian Sucrose gained between 6 and 9 per cent. Triveni Engineering, , , Ugar Sugar Works, Bajaj Hindusthan and Simbhaoli Sugar were up by 5 per cent each.
Elara Capital is bullish on
after all three segments contribute to higher profitability. The brokerage firm has reiterated ‘buy’ rating with a target price of Rs 396 on the share.
Domestic sugar industry is also supported by the low yields from Brazil and Thailand which has kept the supply tight. Brazil faces the worst sugar output in 91 years. Brazil is the largest producer and exporter of sugar. India is more focused on producing ethanol from sugar and excess food grains.
In an interview with ET Now, Abinash Verma, Director General, ISMA, expects prices of sugar to remain steady at higher levels till January 2022.
“I would say till then the picture is very clear, even from the point of view of Brazilian sugar production. The season gets over in a couple of months from now, so there is no surprise coming,” he added.
