Sugar stocks jumped in the morning deals on Monday (September 11) after Prime Minister Narendra Modi launched the Global Biofuel Alliance (GBA) on Saturday on the sidelines of the G20 Summit.

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Individually on BSE, ethanol-producing companies—Praj Industries shares hit a 52-week high at Rs 598.6 apiece and zoomed over 15 per cent, Shree Renuka Sugars' stock gained over 7 per cent, Dhampur Sugar Mills shares rose over 3 per cent, and Balrampur Chinni Mills gained over 3 per cent.

Meanwhile, EID-Parry shares surged over 2 per cent, Globus Spirits was up over 2 per cent, and Dwarikesh Sugar Industries shares gained over 2 per cent.

What is the Global Biofuel Alliance?

The Global Biofuel Alliance aims to accelerate global biofuel use by encouraging technological developments and increasing the use of sustainable biofuels.

Biofuel is a renewable source of energy that is derived from biomass. India, which imports over 85 per cent of its crude oil needs, is gradually building capacity to produce fuel from items including crop stubble, plant waste, and municipal solid waste.

PM Modi during the G20 summit urged nations to join the initiative with a plea to take ethanol blending with petrol globally to 20 per cent.

The Indian Biogas Association (IBA) said in a recent statement that the biofuel alliance can generate opportunities worth $500 billion in the next three years for G20 countries.

Sugar stocks share: Past performance

Praj Industries, Dhampur Sugar Mills, and Balrampur Chini Mills shares have gained between 5 per cent and 64 per cent in the year so far. On the other hand, Shree Renuka Sugar, EID-Parry (India), and Dwarikesh Sugar Industries shares have lost between 4 per cent to 8 per cent in 2023 so far.

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