Sugar company shares jumped up to 8% on the BSE in intraday trade on Thursday as the government pushed back the deadline for attaining 20% ethanol-blending with gasoline by two years to 2023, reducing India's reliance on costly oil imports.
Triveni Engineering & Industries, EID Parry (India), Dhampur Sugar Mills, Dwarikesh Sugar Industries, and Avadh Sugar & Energy all saw a 3-4% increase. Balrampur Chini Mills rose 8% to Rs 325.85 in intraday trade on the BSE today. The stock was up 5.43% at 11.04 a.m. Rana Sugars was up by 6.46% at Rs 15.65 on NSE.
According to an official statement, the government has pushed back the deadline for attaining 20% ethanol-blending with gasoline by two years, to 2023, in order to minimize India's reliance on costly oil imports.
Last year, the government set a goal of achieving 10% ethanol blending in petrol (10% ethanol blended with 90% diesel) by 2022, and 20% doping by 2030. The 20 percent blending aim was pushed out to 2025 earlier this year.
It has now been pushed back until April 2023.
The sugar sector in India is seen favorably by most brokerage houses since it is well-positioned to benefit from both global and domestic considerations. Reduced output from nations like Brazil, Thailand, and the EU would keep supplies tight and global prices stable, allowing India to expand its exports. 6 million tonnes of extra sugar will be diverted from the sugar sector to make 7 billion liters of ethanol, with the remaining ethanol coming from excess grain.