Sugar stocks continue to see handsome gains; surge up to 20%

Shares of sugar companies continued to rally for the third straight session Monday, surging up to 20 percent on a hike in ethanol price for blending in petrol by 25 percent.

Rana Sugars zoomed 20 percent, Avadh Sugar 19.99 percent, Dhampur Sugar Mills 19.99 percent, Uttam Sugar Mills 19.98 percent, Bajaj Hindusthan 19.95 percent, Simbhaoli Sugars 19.95 percent, Dwarikesh Sugar Industries 19.88 percent, Mawana Sugars 19.28 per cent and Sakthi Sugars 19 per cent on BSE.

Also, Triveni Engineering & Industries surged 11.41 percent, Balrampur Chini Mills soared 8.07 percent and EID Parry India 7.50 percent.

Shares of sugar companies had jumped as much as 20 percent Friday also.

On Wednesday last week, sugar stocks had zoomed as much as 18 percent on BSE.

The government Wednesday approved an over 25 percent hike in the price of ethanol produced directly from sugarcane juice for blending in petrol in a bid to cut surplus sugar production and reduce oil imports.

The move of raising ethanol price for blending in petrol by 25 percent would help sugar mills quickly release arrears of cane farmers, which stands at over Rs 13,000 crore.