Sugar stocks in line with the headline indices and considering their bright outlook have been soaring in trade today. The sugar related scrips have been a spot for quite some time and now as the government has supported blended ethanol mission, sugar companies will further be gaining favour.
Read about the government's ambitious Ethanol Blended Petrol programme
The problem while tackling the fuel issue will also be supportive of the sugar industry as the excess sugarcane stock can then be diverted to produce ethanol which can be blended to produce fuel.
In trade on January 4, 2022, sugar stocks including KM Sugar hit 20% upper circuit, while others including Balrampur Chini (13%), Uttam Sugar (20%), Magadh Sugar (20%), Ugar Sugar (10%), Mawana Sugars hit 10% upper circuit.
In the last year, a couple of sugar stocks turned into multibaggers. Here in read about all such scrips.