InvestorQ : Why did sugar stocks like Balrampur Chini, Triveni, EID Parry and Dhampur rally on 03 June?
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Why did sugar stocks like Balrampur Chini, Triveni, EID Parry and Dhampur rally on 03 June?

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swati Bakhda answered.
4 months ago
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Sugar has been rallying for quite some time but the latest boost to sugar stocks came from the changes to the ethanol blending deadline. Now the deadline has been pulled back by 2 years more to 2023 instead of 2025. The whole idea of increasingly the share of ethanol blending in petrol is meant to reduce India's dependence on oil imports. That is important as India relies on crude imports to meet 85% of its daily demand.

Due to this new order, most major sugar stocks like Balrampur Chini, Triveni Engineering, EID Parry, Dhampur and Dwarikesh Sugar were up by around 3-4%. In the previous year, the government had set a target of 10% ethanol blending in petrol by 2022 and 20% by 2030. At that time, it was said that 2030 target defeated the purpose. The 20% was pulled back to 2025 and now to 2023. Brazil is seeing the worst sugar output in nearly 100 years.

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