Triveni Engineering, Dwarikesh Sugar Stocks Trade Higher On Bourses Over Boost In Sugar Output

Shares of sugar companies like Triveni Engineering and Dwarikesh Sugar Industries have been rising since the past 24 hours, mainly aided by the reports that sugar production reached 30.98 million tonnes by March of the ongoing 2021-22 marketing year. This was higher than 27.87 million tonnes from the corresponding period of last year.

Resultantly, stocks of sugar companies have been on a roll. In early morning trade today, shares of Dwarikesh Sugar Industries had jumped by almost 5.7 per cent to trade at Rs 146.30 per share at 11 am. The shares were trading Rs 7.50 higher than the previous close at the NSE.

Similarly shares of Triveni Engineering were trading almost 2 per cent higher from previous close at Rs 340 per share at 11 am at the NSE.

Shares of other major sugar entities like Magadh Sugar & Energy, Rana Sugar, Uttam Sugar Mills, KM Sugar, Andhra Sugar, Mawana Sugar and Shree Renuka Sugar too have been trading higher on the bourses over higher production of the sweetner.

According to a report by Indian Sugar Mills Association (ISMA), India's sugar export is likely to touch 8.5 million tonne in the ongoing 2021-22 marketing year ending September. "Sugar production reached 30.98 million tonne till March of the ongoing 2021-22 marketing year, higher than 27.87 million tonne in the year-ago period," added the report. 

Meanwhile, the government extended the timeline for disbursement of loan for ethanol projects under different schemes till September 30 this year, to boost domestic production and achieve ethanol blending of 20 per cent by 2025. The move is aimed at facilitating entities to complete their projects and avail benefits of interest subvention.