Shares of sugar companies rallied up to 15% over two days following reports that the central government is considering raising the minimum selling price (MSP) of sugar for the upcoming 2024-25 season, starting October 1, 2024.
Prominent sugar stocks that caught investors’ attention included Shree Renuka, which rose by 11.62%, Bajaj Hindusthan Sugar up by 15.03%, Dhampur Sugar Mills increasing by 6.70%, KCP Sugar and Industries Corp surging by 15.31%, and Dwarikesh Sugar Industries up by 7.91%.
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Other notable gains were seen in Balrampur Chini, which climbed 3.92%, Dalmia Bharat Sugar and Industries up by 7.28%, Magadh Sugar & Energy increasing by 8.08%, Rana Sugars rising by 8.37%, and Mawana Sugars, which jumped by 13.78%.
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The current MSP for sugar is Rs 31 per kilogram and has remained unchanged since 2019. According to reports, the MSP is expected to be revised for the upcoming season rather than the current one. While the government is anticipated to implement a reasonable hike, it is expected to fall short of the industry’s demand for an MSP increase to Rs 40-41 per kilogram.
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On Tuesday, Hardeep Singh Puri, the newly appointed Minister for Petroleum and Natural Gas in the Narendra Modi 3.0 government, stated that India is on track to achieve its 20% ethanol blending target by next year.
The Union minister noted that India successfully reached the 15% ethanol blending target in May, ahead of the accelerated goal initially set for 2030. He emphasized the country’s commitment to enhancing its energy matrix.
“In the month of May, we were able to cross 15% ethanol blending. Based on the current progress, I am reasonably confident that the 20% blending target will be completed by the year 2025,” Puri added.
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