Sugar stocks continue to see handsome gains; surge up to 20%

Shares of sugar companies continued to rally for the third straight session Monday, surging up to 20 per cent on a hike in ethanol price for blending in petrol by 25 per cent.

Rana Sugars zoomed 20 per cent, Avadh Sugar 19.99 per cent, Dhampur Sugar Mills 19.99 per cent, Uttam Sugar Mills 19.98 per cent, Bajaj Hindusthan 19.95 per cent, Simbhaoli Sugars 19.95 per cent, Dwarikesh Sugar Industries 19.88 per cent, Mawana Sugars 19.28 per cent and Sakthi Sugars 19 per cent on BSE.

Also, Triveni Engineering & Industries surged 11.41 per cent, Balrampur Chini Mills soared 8.07 per cent and EID Parry India 7.50 per cent.

Shares of sugar companies had jumped as much as 20 per cent Friday also.

On Wednesday last week, sugar stocks had zoomed as much as 18 per cent on BSE.

The government Wednesday approved an over 25 per cent hike in the price of ethanol produced directly from sugarcane juice for blending in petrol in a bid to cut surplus sugar production and reduce oil imports.

The move of raising ethanol price for blending in petrol by 25 per cent would help sugar mills quickly release arrears of cane farmers, which stands at over Rs 13,000 crore.