The sugar sector, which has been severely beaten down over the past one-year or so on account of huge over supply concerns. Sugar prices all over the world have been touching 52 weeks low. Sugar stocks witnessed a relief rally today and surged significantly on the back of agriculture minister’s announcement of plans to support the sugar industry.

Agriculture Minister announced its dual plan to support the sugar industry

1. India plans to double the requirement of Ethanol blended into gasoline and lift a ban on direct production of biofuel  from sugarcane juice- measures that would help reduce the countries sugar stocks and also address in part the rising demand for fuel.

The government issue orders soon requiring oil companies to double the ethanol content in gasoline sold in the country to 10% by Oct next year from 5% now, union agriculture minister sharad powar said

2.He also said that government also wants farmers and sugar mills directly produce ethanol from sugar cane juice

Currently Indian laws ethanol to be produced only from the molasses left after the juice is extracted from making sugar.

Many research analyst are of the view that this is IF and BUT game and the picture is still gloomy and can predict once the policy are out from paper and put to action.

Meanwhile, the stocks rallied quite smartly today

It was lead by Triveni Engg which was up by 23% followed by Balrampur Chini.which was also poised at same level. There was sharp increase in Simbhaoli, JK Dhampur  DCM Shriram and Sakthi sugar which were almost up by 20%. The other stocks which had seen some rise were EID Parry and Bajaj Hindustan which were up by 14% and 4 % respectively.

Company Name	Price		% Change
	18th Sep	19th Sep
Triveni Engg	110.00	136.00	23.64
Balrampur Cheni	67.25	83.25	23.79
Simbhaoli Sugar	34.20	41.00	19.88
Sakthi Sugar	77.25	92.70	20.00
JK Sugar	24.05	28.95	20.37
EID Parry	144.30	165.30	14.55
Dhampur Sugar	53.90	64.65	19.94
DCM Shriram	53.75	63.65	18.42
Bajaj Hindustan	29.50	30.95	4.92

By Aniket Vakharia & Omprakash Singh