Sugar stocks were among the few categories that traded firm in an otherwise weak market on Thursday (April 15, 2021) even as the Sensex index has fallen by more than 400 points. The rise in the sugar stocks has been on the back of expectation of strong earnings in the March ended quarter. Other reasons for the gains have been growth in exports as well as the subsidy that was announced last year in December month.
Stocks like Balrampur Chini Mills, Uttam Sugar Mills, Dalmia Bharat Sugar, Dhampur Sugar, EID Parry all surged in the range of 4-9 percent. Individually the stock of Balrampur Chini Mills has hit a new high of Rs. 259
Also, on April 10, 2021, the company's board approved the revised capital expenditure of Rs. 425 crore
As there is a huge push in the direction of ethanol blending with petrol to levels of 20 percent by 2025, the industry is carrying out huge capacity expansion programme for complying with ethanol requirement of 10 billion litre by 2025.
Furthermore, the sugar economy has enhanced significantly in the last two years owing to increase in sugar production.