Sugar Stocks Surge on Reversal of Sugarcane Juice Ban for Ethanol Production
The Indian government’s recent reversal of the ban on using sugarcane juice for ethanol production has come as welcome relief for sugar stocks
However, thefood ministry’s earlier directive banning this route in December had stalled the momentum
The government move seems to have been prompted by erratic monsoon rains affecting the country’s sugarcane crop.
The country had also extended restrictions on sugar exports beyond October 31st to support domestic availability and prices.
This provides clarity and certainty to sugar mills on unlocking additional revenues from this segment.
Other prominent names such as Dalmia Bharat Sugar and Triveni Engineering also jumped