Balrampur Chini led the gains among sugar stocks, rising 8% to Rs 260.5. Other notable performers included Avadh Sugar & Energy, Bajaj Hindustan Sugar, and Dalmia Bharat, all surging over 5%. Andhra Sugar, DCM Shriram Industries, and EID Parry also saw increases of more than 3%.
The rally followed Joshi’s statement on Thursday regarding the industry’s demand to raise the MSP of sugar from its current level of Rs 31 per kg, along with a potential hike in ethanol prices.
“We are looking at the sugar production numbers for the 2024-25 season that will start in October before coming to any conclusion on exports. The industry has given us some numbers while we have our estimates based on all the inputs,” Joshi told reporters on the sidelines of the India Sugar and Bio-Energy Conference, organised by the Indian Sugar and Bio-Energy Manufacturers Association (ISMA).
He added that the expectations for production were good. “A decision on exports will come depending on where our closing stocks, balance, and opening stocks stand at. We are hopeful that sugar production will be good this year,” he noted.
According to preliminary estimates from The Indian Sugar and Bio-Energy Manufacturers Association released on July 30, gross sugar output for the 2024-25 season (October-November) is projected at 33.31 million tonnes, a decline of 2% from 33.99 million tonnes in the previous season.The minister also indicated that the government is considering an increase in ethanol prices. “Our ministry is the nodal ministry for ethanol, and we are in discussions with the petroleum ministry. A hike in ethanol prices is under consideration,” he said.Ethanol prices derived from sugarcane feedstock have remained unchanged since the 2022-23 ethanol supply year (November-October). Currently, ethanol produced from cane juice is priced at Rs 65.61 per litre, while ethanol from B-Heavy and C-Heavy molasses is priced at Rs 60.73 and Rs 56.28 per litre, respectively.
Additionally, the minister mentioned that the government is reviewing a proposal to increase the minimum selling price of sugar, which has remained at Rs 31 per kg since it was last raised in February 2019.
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