Shares of sugar companies experienced a surge on Thursday after Union Minister Nitin Gadkari announced that India is on track to reach its goal of 20% ethanol blending within the next two months.
The share price of Dhampur Sugar Mills increased by as much as 8.4%, reaching an intra-day peak of Rs 156.91. EID Parry’s stock rose by 3.3%, trading at Rs 848. Dalmia Bharat’s shares climbed 1.45% to Rs 1,762. Shree Renuka Sugars increased 5.3% during Wednesday’s trading, reaching Rs 38.69. Bajaj Hindusthan Sugar’s stock advanced by 4.6%, hitting a high of Rs 29.73. Praj Industries gained 7%, trading at an intra-day high of Rs 790.85. Dwarikesh Sugar Industries shares increased by 7%, reaching a peak of Rs 51.45 during the trading session.
“We will meet the goal of 20 percent ethanol blending within the next two months. The use of E20 (petrol containing 20% ethanol) will contribute to reducing pollution,” the minister stated on Wednesday.
The road transport and highways minister mentioned that Tata Motors, Mahindra & Mahindra, Maruti Suzuki, and Hyundai Motors have started manufacturing vehicles that run on 100% bio-ethanol.
Using ethanol produced from sugarcane, broken rice, and other agricultural products will aid India, the world’s third-largest oil consumer, in lessening its reliance on imports. The practice of combining ethanol with petrol was initiated in 2001 as a pilot program.
As of January 15 during the current crushing season of 2024-25, sugar production in the country has decreased by 20.65 lakh tonnes, which is a 13.66% drop compared to the same time last year. It is expected that by the end of this season, sugar production could fall by approximately 50 lakh tonnes.
Data from the National Federation of Cooperative Sugar Factories (NFCSF) indicates that sugar production in India reached 130.55 lakh tonnes as of January 15, down from 151.20 lakh tonnes during the same period last year. This season’s projected total sugar production is 270 lakh tonnes, a reduction from 319 lakh tonnes in the previous season. This also takes into account the sugar allocated for ethanol production.
