Praj Industries, Shree Renuka: Sugar Stocks Rise Up To 6% On Likely Ethanol Price Hike
Shares of sugar companies surged by up to 6% following reports from CNBC-Awaaz that the Cabinet may soon approve an increase in ethanol prices
Shares of sugar companies surged by up to 6% on January 16, following reports from CNBC-Awaaz that the Cabinet may soon approve an increase in ethanol prices. Sources revealed that the price of B-heavy molasses could be raised by Rs 1.82 per litre, while C-heavy molasses might see an increase of Rs 6.87 per litre.
As a result, by 11:45 am on January 16, all major sugar stocks were trading in the green. Praj Industries saw a 6% rise, trading at Rs 785, while shares of Shree Renuka rose 4%, reaching Rs 38.28. Balrampur Chini gained 2%, trading at Rs 502, and Bajaj Hindusthan Sugar shares were up nearly 4%, trading at Rs 29.54.
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B-heavy molasses, a byproduct of sugar production, is used in ethanol production, while C-heavy molasses, derived from sugar refineries, is also used to produce ethanol.
The government has set a target to achieve a 20% ethanol blending rate by FY26, with the current ethanol blending in petrol at 15.83%.
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