Sugar businesses’ shares, including Balrampur Chini Mills Ltd and Triveni Engineering & Industries Ltd, were down 28-33% from their 52-week highs in April. These firms have invested in major projects to expand their distillery capabilities, and a significant increase in ethanol prices would improve investor confidence.
The news came as a relief when a report said that the government may hike the price of ethanol sold by sugar producers. The hike may be implemented on December 1, 2022. The increased use of ethanol has given a major boost to the growth of the sugar industry.
The top gainers in sugar stocks today:
|Stock Name||BSE Price (Rs)||Gain Percent||NSE Price (Rs)||Gain Percent|
|Shree Renuka Sugars||50.55||1.61%||50.55||1.61%|
The top losers in sugar stocks today:
|Stock Name||BSE Price (Rs)||Loss Percent||NSE Price (Rs)||Loss Percent|
|Dhampur Sugar Mills||233.45||-0.66%||232.70||-0.98%|
In an interview with a newspaper, Atul Chaturvedi, Chairman of Shree Renuka Sugars, stated that India should continue to export sugar because India has a surplus supply of sugar. The best way to use this excess sugar would be for ethanol or to export it to other countries. This will also ensure that the farmers are getting paid on time, and compared to other crops, sugarcane gives farmers better returns.
India this year has exported nearly 11 million tonnes. In the upcoming year, it also plans to export around 8 to 9 million tonnes of sugar. The rains in sugar-producing states like Karnataka and Maharashtra have been quite favourable. The export of sugar will also boost the rupee against the dollar.
India is the world’s biggest producer of sweeteners and exported 11.2 million tonnes of sugar in the current year. As inflation kept rising, to keep the prices in check, it banned the export of wheat and sugar, while importing crude oil from the international market.
The report of inflation for August-2022 came on September 12, 2022, at 5:30 pm. The National Statistics Office reported inflation at 7 percent, with food inflation at 7.62 percent and fuel inflation at 10.78 percent.
Currently, the international market is favorable for Indian raw and white sugar. Starting with the new season in October, the Government have started the procedure to export Sugar to the International market. India will begin the export of sugar in two tranches in October. The estimated amount for export is around 7 to 8 million tonnes, as per the report that came from a senior government official. The government is going to keep a check on the export of sugar as it may cause disruption to the domestic market price.