Shares of sugar companies rose for a second consecutive day on Thursday after Union minister Hardeep Singh Puri said that the country was on track to reach its 20% ethanol blending target by 2025.
Bajaj Hindusthan Sugar Ltd. and Shree Renuka Sugars Ltd. led the gains, rising about 14% and 11%, respectively. Uttam Sugar Mills Ltd. hit its highest level since March 12, while Dhampur Sugar Mills Ltd. touched its highest since Feb. 20.
The Modi government will likely continue "proactive" policy for the sugar industry, according to Deepak Ballani, director general of the Indian Sugar and Bio-Energy Manufacturers Association.
As per a NITI Aayog report, the 20% blending requirement will require 1,000 crore litres of ethanol. "We believe with sufficient feedstock availability, we will be able to cater to the required quantity as per target," he told NDTV Profit.
Ballani expects the government's first priority to be the continuation of the ethanol blending programme and it should equally prioritise the revision of the minimum support price for sugar to align with fair and remunerative price of sugarcane.
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