Sugar stocks rise after Centre imposes 50% export duty on molasses
Zee Business had reported, citing sources, on December 29 that the government was mulling the imposition of an export duty to the tune of 40-60 per cent on molasses.
)
12:19 PM IST
Most sugar stocks rose on Tuesday (January 16) after the Centre announced the imposition of a 50 per cent export duty on molasses, with effect from January 18. While stocks such as Shree Renuka Sugars, Balrampur Chini, EID Parry, Magadh Sugar, Mawana Sugards, Avadh Sugar, Rajshree Sugars traded up to two per cent higher in morning deals, counters such as DCM Shriram and Bannari Aman declined up to 1.5 per cent.
The measure has been taken to ensure the market forces of demand and supply in the commodity.
Analysts say the action by the government is likely to ensure better availability of molasses for domestic companies.
Zee Business had reported, citing sources, on December 29 that the government was mulling the imposition of an export duty to the tune of 40-60 per cent on molasses.
What analysts say about sugar stocks?
Domestic brokerage JM Financial remains bullish on Balrampur Chini Mill with a target price of Rs 500 per share.
While the government remains committed to its target of 20 per cent ethanol blended petrol (EBP) by 2025, it believes this is likely to be deferred by 1-2 years given likely low sugar production due to the weak monsoon, wrote analysts at the brokerage in a report dated January 15.
“We believe rise in a) C-Heavy ethanol prices and b) sugar realisation and volumes will partially offset lower ethanol volumes. Sugar production in India till 31st Dec’23 showed an 8 per cent decline to 11.2mn tonnes (mnt) led by Maharashtra and Karnataka, partially offset by Uttar Pradesh. We estimate sugar production of 30.5-31.5mnt in the current season,” they added.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
)
)
)
)
)
)
)
)
)
Centre gives nod to export of 25,000 tonnes pharma grade sugar
EID Parry Q1 Results: Sugar maker logs net profit of Rs 91 crore 
EID Perry, Shree Renuka Sugars, Balrampur Chini: Sugar stocks trade higher as sources say government is mulling MSP price rise
What does the Cabinet's approval to increase FRP on sugarcane mean for sugar stocks? Analysts decode 
OMCs announce additional incentive on maize-based ethanol; BCL Industries, Gulshan Polyols and sugar stocks jump
