From Balrampur Chini, Renuka Sugar, to Dhampur Sugar, why sugar stocks are rising today?

Sugar stocks today: On Friday, sugar stocks became one of the key drivers of the stock market surge after the government removed the cap on sugar diversion for ethanol production for Ethanol Supply Year 2024-25 (ESY2024-25). 

As per this notification by the government, sugar producers and distilleries can now produce ethanol from sugarcane juice and syrup, B-Heavy molasses, and C-Heavy molasses as per the agreements with oil marketing companies for the ESY2024-25. 

Major sugar stocks including Dhampur Sugar, Balrampur Chini, Dalmia Bharat, Shree Renuka Sugar, and Triveni Engineering surged substantially with some stocks hitting as high as 8 per cent intraday. 

As of 01:31 pm, Dhampur Sugar Mills Limited was trading at 6.86 per cent or Rs 14.35 higher after hitting the day high of Rs 228.85 apiece. Balrampur Chini Mills Limited was trading at Rs 599.55 apiece, including 20.90 points or 3.61 per cent higher. 

Similar to this move, Shree Renuka Sugars was trading at 6.37 per cent higher, Dalmia Bharat Sugar and Industries was trading at 8.55 per cent higher whereas Andhra Sugar was trading at 4.41 per cent higher as of 01:38 pm on August 30. 

In terms of broader market performance, the domestic bourses hit a fresh high on Friday with NSE Nifty 50 trading 88.35 points higher and moving towards a fresh record closure. Whereas BSE Sensex was trading 273.27 points or 0.33 per cent higher at 82,407.88 after recording a fresh all-time high of 82,637.03.