Shares of sugar companies, including Balrampur Chini Mills, Dhampur Sugar Mills, and Shree Renuka Sugars, surged up to 9 percent in trade on Wednesday after an ethanol price hike approval by the Cabinet Committee on Economic Affairs (CCEA).
The government has increased to hike the price of ethanol from C-heavy molasses from Rs 56.58 per litre to Rs 57.97 per litre.
Meanwhile, the kept the prices of B-heavy molasses unchanged at Rs 60.73 per liter. Additionally, the price of ethanol produced from cane juice has also been kept unchanged.
"The approval will not only facilitate the continued policy for the Government in providing price stability and remunerative prices for ethanol suppliers but will also help in reducing dependency on crude oil imports, savings in foreign exchange and bring benefits to the environment. In the interest of sugarcane farmers, as in the past, GST and transportation charges would be separately payable. Increase in prices of CHM Ethanol by 3% will assure sufficient availability of ethanol to meet the increased blending target," the governmente in a release said.
"The government has advanced the target of 20 percent ethanol blending in petrol from earlier 2030 to ESY 2025-26," it added.
Balrampur Chini Mills shares rose 5.4 percent to the day's high of Rs 505.3 per share on the NSE, while Shree Renuka Sugars gained after five days of consecutive fall. Shree Renuka Sugars stock touched an intraday high of Rs 38.39 per share on the NSE, advancing 7.2 percent.
Meanwhile, shares of Dhampur Sugar Mills Ltd, Bajaj Hindusthan Sugar and Dwarikesh Sugar Industries Ltd rose between 6 - 9 percent in anticipation of ethanol price hike approval by the CCEA.
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