On September 16, sugar stocks saw a notable rally after the Department of Food and Public Distribution (DFPD) gave the green light for sugar mills and distilleries to produce Rectified Spirit (RS) and Extra Neutral Alcohol (ENA) from sugarcane juice and B-heavy molasses. This decision is expected to boost investor interest, and if you're looking to buy shares online, now might be a reasonable time, especially with this upward momentum in sugar-related stocks.
The government's move aligns with its earlier approval, allowing the production of ethanol from sugarcane juice, B-heavy molasses, and C-heavy molasses for the Ethanol Supply Year (ESY) 2024-25. Shares of companies like Dhampur Sugar Mills, Bajaj Hindustan Sugar, Balrampur Chini Mills, Dalmia Bharat, Awadh Sugar, Mawana Sugars, Shree Renuka Sugar, and Triveni Engineering saw a rise of over 2%. If you're exploring ways to buy shares online, sugar stocks may offer a lucrative option, considering these recent developments.
Besides the key players, other sugar companies also witnessed gains. Stocks like DCM Shriram Industries, Dharani Sugars, Bannari Amman Sugars, Davangere Sugar Company, and EID Parry traded with gains ranging between 1-2%. Analysts predict that the government's approval could reignite the ethanol-blending program, similar to what was seen during Sugar Season 23. As sugar-related investments surge, investors considering the option to buy shares online could potentially benefit from these market movements.
In December 2023, the government imposed restrictions on the use of sugarcane juice and syrup for ethanol production in ESY 2023-2024 to ensure enough sugar was available for domestic consumption and to maintain price stability. Now that these restrictions have been lifted, the market sentiment appears optimistic. If you're looking to buy shares online, the current rally in sugar stocks is worth watching closely.
India's ethanol-blending program has been gaining momentum, with official data showing a blending rate of 13.3% by July of the current season, up from 12.6% in the previous season. The country's total ethanol production capacity is now at 1,589 crore liters, of which 505 crore liters were purchased by Oil Marketing Companies (OMCs) for blending during the 2023-2024 season. This expanding market for ethanol production is creating opportunities for those seeking to buy shares online in sugar-related sectors.
With India being the second-largest sugar producer globally, after Brazil, the government's goal to achieve 20% ethanol blending by 2025-2026 remains on track. As this target approaches, the demand for ethanol production is expected to surge, making sugar stocks even more appealing. If you're looking for a chance to buy shares online, now might be the time to tap into these expanding opportunities.
With the resumption of the ethanol-blending program and increased government focus on the production of RS and ENA from sugarcane juice, sugar companies are likely to see continued growth in the near term. Stocks of prominent sugar producers are already rallying, offering an attractive entry point for those planning to buy shares online. As the market continues to evolve with government policies driving growth, the potential upside for sugar stocks remains significant.
In conclusion, the government's approval of RS and ENA production from sugarcane juice has triggered a wave of positive sentiment across sugar stocks. If you're planning to buy shares online, this surge in sugar-related investments offers a timely opportunity. With favorable policies and a rising ethanol market, sugar stocks are expected to remain strong contenders for long-term gains.
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