Balrampur Chini, Shree Renuka, other sugar stocks jump up to 7% on ethanol price hike approval

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.