Shares of sugar companies rose up to 6% on January 16 as CNBC-Awaaz reported that Cabinet may soon approve an increase in ethanol price.
B-heavy molasses price can be hiked by Rs 1.82 and C-heavy by Rs 6.87 per litre, sources told the channel.
C-heavy molasses price can be increased to Rs 56.28 from Rs 49.41 per litre, reported CNBC-Awaaz.
Consequently, at 11:45 am on January 16, all sugar stocks were trading in green on January 16 with Praj Industries stock rising 6% to trade at Rs 785.
Shares of Shree Renuka on BSE were trading 4% higher at Rs 38.28 apiece while those of Balrampur Chini were trading 2% higher at Rs 502 apiece.
Bajaj Hindusthan Sugar's shares were trading nearly 4% higher at Rs 29.54 apiece.
B-heavy molasses is a byproduct of sugar production that is used to make ethanol and C-heavy molasses is a byproduct of sugar refineries that is used to make ethanol.
Government has a target to achieve ethanol blending target of 20% by FY26. Current ethanol blending petrol is at 15.83%.
India will achieve its target of 20% ethanol blending in the next two months, Union minister Nitin Gadkari said on Wednesday.
“We will achieve this target of 20% ethanol blending in the next two months. Use of E20 (petrol with 20% ethanol) will help in reducing pollution,” Gadkari said while speaking at an event.
The road transport and highways minister said Tata Motors, Mahindra & Mahindra, Maruti Suzuki, and Hyundai Motors have started manufacturing vehicles that run on 100% bio-ethanol.
Use of ethanol, extracted from sugarcane as well as broken rice and other agri produce, will help India — the world’s third largest oil consumer — bring down its reliance on overseas shipments.
India is 85% dependent on imports for meeting its oil needs.
Use of E20 leads to an estimated reduction of carbon monoxide emissions by about 50% in two-wheelers and about 30% in four-wheelers compared to E0 (neat petrol).
The target of achieving average 10% blending was achieved in June 2022, much ahead of the target date of November 2022.
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