Sugar stocks rally as unblended fuel to attract Rs 2/litre extra excise duty

NEW DELHI: Sugar stocks rallied after Finance Minister Nirmala Sitharaman proposed to levy additional excise duty of Rs 2 per litre on unblended fuel. The tax will be applicable from October 1, 2022.

Analysts at ICICIdirect said this would encourage ethanol blending of fuel and will be positive for sugar companies.

Ethanol is a byproduct of sugar manufacturing. The government has planned to blend as much as 20 per cent ethanol in fuel by 2025.

DCM Shriram Industries (up 6.77%), SBEC Sugar (up 3.97%), Kesar Enterprise (up 1.10%), KCP Sugar & Industries (up 1.08%), Rajshree Sugars & Chemicals (up 1.01%), Shree Renuka Sugars (up 0.77%), Piccadily Agro Industries (up 0.49%), Bannari Amman Sugars (up 0.36%), Vishwaraj Sugar Industries (up 0.21%) and Ugar Sugar Works (up 0.15%) were among the top gainers.

Dharani Sugars & Chemicals (down 2.87%), Dhampure Specialty Sugars (down 2.49%), Riga Sugar Company (down 1.74%), Triveni Engineering & Industries (down 1.58%), Dalmia Bharat Sugar & Industries (down 1.56%) and Sakthi Sugars (down 1.50%) were among the top losers.