Shares of seven sugar companies rose 0.29% to 3.3% at 14:30 IST on BSE after reports suggested that the food minister has asked for Rs 2 per litre hike in ethanol prices sold to Oil Marketing Companies.
Meanwhile, the S&P BSE Sensex was up 56.39 points, or 0.18% to 31,620.21.
Bajaj Hindusthan (up 2.41%), Balrampur Chini Mills (up 1.18%), Shree Renuka Sugars (up 0.29%), Sakthi Sugars (up 0.57%), Rana Sugars (up 1.14%), Triveni Engineering & Industries (up 3.3%) and Dwarikesh Sugar Industries (up 0.88%) rose.
Ethanol, a byproduct of sugar manufacturing, is obtained by processing molasses to form rectified spirit (RS), with around 95% purity. On further processing, ethanol is obtained for direct blending with petrol.
Meanwhile, due to a normal south-west monsoon, decent Kharif harvest and the upcoming festive season rural incomes may rise and result in increased demand for essential food commodities, including sugar thus perking up its prices.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
