Accordingly, shares of Rajshree Sugars hit 20% upper circuit on the BSE. Shares of Uttam Sugar and Balrampur Chini jumped in the range of 4-5% in today’s session. Further, shares of Bajaj Hindusthan, Ugar Sugar, Dalmia Bharat Sugar, Dhampur Sugar, Dwarikesh Sugar, Sakthi Sugars, etc., which gained between 3-2% respectively.
According to the media reports, ethanol-blending in petrol has risen to a record 6.2% in 2019 so far, rising nearly tenfold in 6 years. About 127.5cr litre of ethanol had already been purchased by June 17, 2019, in the current ethanol supply year.
Meanwhile, ICRA said in a report that ethanol capacities are under implementation which is available from next season, there could be the diversion of molasis to ethanol manufacturing which could impact sugar production. With the government aiming to increase diversion of sugarcane towards ethanol, we may see higher loan allocation to sugar mills for the production of ethanol, ICRA added.
The Sensex rose 165 points at 39,757 levels and the Nifty gained 48 points at 11,896 levels.