At around 9:32 a.m., shares of Dhampur Sugar Mills were up over 7 per cent, Balrampur Chini Mills and Shree Renuka Sugars were up over 6 per cent, Mawana Sugars and Dalmia Bharat Sugar and Industries were up over 5 per cent, Rajshree Sugars hit the upper circuit of 5 per cent and Triveni Engineering was up over 4 per cent.

 

On Friday, December 15, the government lifted the ban on making ethanol from sugarcane juice and B-heavy molasses for the 2023–24 marketing year, which started on October 1. They decided to allow sugar mills to divert up to 1.7 million metric tonnes of sugar for ethanol production as New Delhi aims to reduce disruptions in its ambitious biofuel programme.

 

As the world's second-biggest sugar producer, India had previously directed sugar mills not to use cane juice or syrup for ethanol due to concerns over production in states like Maharashtra and Karnataka due to less rainfall.

 

 

The government's move will assist the industry, which has invested billions of dollars over the last five years to boost ethanol production capacity, said a senior industry official, also preferring anonymity.

 

Sugar stocks' performance

In 2023 so far, Dhampur Sugar Mills has gained over 7 per cent, Dalmia Bharat Sugar has given over 8 per cent returns, Balrampur Chini Mills has risen over 1 per cent, and Mawana Sugars has risen 0.05 per cent. 

 

Conversely, Dwarikesh Sugar has slipped over 13 per cent and Shree Renuka Sugars has declined by over 15 per cent.

 

In the same period, the Nifty50 has risen 18 per cent.