Except for Ugar Sugar Works Ltd, which was down nearly 3%, others sugar stock traded in green. Uttam Sugar Mills Ltd, Mawana Sugars Ltd, Bajaj Hindusthan Sugar, Avadh Sugar & Energy Ltd, and K M Sugars Mills Ltd gained 1% to 2%, while Dalmia Bharat Sugar & Industries Ltd, Sakthi Sugars Ltd, Balrampur Chini Mills Ltd, and Triveni Engineering & Industries Ltd rose over 2.5% to 6%.

 

Dalmia Bharat Sugar share price, Sakthi Sugars share price, Avadh Sugar share price, Triveni Engineering share price, and Mawana Sugars share price touched new 52-week high in today's session.

 

Analysts believe that the G20 biofuel initiatives would improve the prospects for India's sugar industry. 

 

According to Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, since there is a global consensus on sustainability and renewable energy, the biofuel alliance proposed at the G20 summit is likely to be taken up in right earnest. Since India is the second largest producer of sugar, after Brazil, the Indian sugar industry stands to gain from the decision to increase ethanol blending with petroleum products.

 

"Sugar prices have gone up by around 3 percent during the last one month, the prospects for sugar companies have improved. But the good news is already in the price with many sugar stocks trading at 52-week highs," added Vijayakumar.

 

The prime minister launched the alliance in the presence of the US President Joe Biden, Brazilian President Luiz Inacio da Silva, Argentinian President Alberto Angel Fernández, Italian prime minister Giorgia Meloni, Bangladesh prime minister Sheikh Hasina among others.

 

Apart from India, Brazil and the US, the other G20 member countries supporting the initiative are Argentina, Canada, Italy, and South Africa. Bangladesh, Singapore, Mauritius, and the UAE are the G20 invitee countries.

 

The three founding members of alliance, the US, India and Brazil contribute about 85% of the global production and the 81% of consumption of ethanol.