Government Lifts Ban on Sugarcane Juice for Ethanol: Stocks Surge

Sugar stocks soared on Friday following the government's decision to lift the ban on using sugarcane juice and syrup for ethanol production for the 2024-25 ethanol supply year. Major sugar companies saw significant stock gains as the market reacted positively to the news.

Sugar stocks were in the limelight on Friday, a day after the government permitted the use of sugarcane juice and sugar syrup for ethanol production in the 2024-25 ethanol supply year (ESY).

Shares of Triveni Engineering & Industries jumped 7.62 per cent, Dhampur Sugar Mills rallied 7.55 per cent, Avadh Sugar & Energy zoomed 7.20 per cent and Dalmia Bharat Sugar and Industries surged 5.79 per cent on the BSE.

'This spike followed the government's decision to allow sugar mills to use cane juice or syrup to produce ethanol for the ESY 2024-25,' Avdhut Bagkar, Technical and Derivatives Analyst at StoxBox, said.

(With inputs from agencies.)