“After the two weeks of confusion, this is a positive move for the sugar companies. The government allowing the industry to divert some amount of sugar juice towards ethanol, is clearly a positive move in terms of the profitability that would have happened otherwise if the ban would have remained. So, net-net, this is a positive move from a margin standpoint.”
Sugar stocks rise significantly in response to the food ministry s order reversing the ban on using sugarcane juice for ethanol production. Bajaj Hindusthan Sugar leads the gains with a 7.7% increase.
India News: The government allowed the use of both sugarcane juice and B-heavy molasses to produce ethanol, capping the diversion of sugar at 17 lakh tonnes. This