Sugar companies rally as government fixes higher ethanol price
Shares of sugar companies surged in early trade after the govt fixed a price of Rs 48.50-49.50 per litre for procurement of ethanol.
By ET Online | Updated:
MUMBAI: Shares of sugar companies surged in early trade after the government fixed a price of Rs 48.50-49.50 per litre for procurement of ethanol for blending with petrol.
The rate is much higher than the price oil companies presently pay to buy the sugarcane extract.
Oil firms presently pay about Rs 29/litre for ethanol. The Food Ministry had said that ex-sugar mill price of ethanol is around Rs 42.02 per litre. For ethanol suppliers, the landed cost of ethanol at the OMCs depots would be around Rs 49 per litre.
According to Narendra Murkumbi, MD, Shree Renuka Sugars, this will lead to additional demand for 1.25 million litres of ethanol.
In an interview to ET Now, he said the ethanol price has been de-linked from price of petrol for the first time and has been linked to cane pricing.
New pricing will make it easier for mills to convert sugar to ethanol and the industry will have flexibility to move between sugar & ethanol production.
He expects new tender to be launched immediately.
The Cabinet Cabinet Committee on Economic Affairs (CCEA) today fixed the delivered price of Ethanol in the range of Rs 48.50 per litre to Rs 49.50 per litre, depending upon the distance of sugar mill from the depot/installation of the public sector oil marketing companies (OMCs), an official statement said.
At 10:00 a.m.; Bajaj Hindusthan was at Rs 22.40, up 6.67 per cent, on the BSE. It surged 11.42 per cent to touch intraday high of Rs 23.40.
Balrampur Chini was at Rs 62.50, up 6.56 per cent, on the BSE. It surged 8.61 per cent to touch intraday high of Rs 63.70.
Dhampur Sugar was at Rs 47.75, up 4.60 per cent, on the BSE. It surged 7.22 per cent to touch intraday high of Rs 48.95.
Dwarikesh Sugars was at Rs 34.95, up 6.23 per cent, on the BSE. It surged 12.45 per cent to touch intraday high of Rs 48.95.
Shree Renuka Sugars was at Rs 17.80, up 5.64 per cent, on the BSE. It surged 10.97 per cent to touch intraday high of Rs 18.70.
Simbhaoli Sugars was at Rs 15.85, up 12.01 per cent, on the BSE. It surged 16.25 per cent to touch intraday high of Rs 16.45.
The rate is much higher than the price oil companies presently pay to buy the sugarcane extract.
Oil firms presently pay about Rs 29/litre for ethanol. The Food Ministry had said that ex-sugar mill price of ethanol is around Rs 42.02 per litre. For ethanol suppliers, the landed cost of ethanol at the OMCs depots would be around Rs 49 per litre.
According to Narendra Murkumbi, MD, Shree Renuka Sugars, this will lead to additional demand for 1.25 million litres of ethanol.
In an interview to ET Now, he said the ethanol price has been de-linked from price of petrol for the first time and has been linked to cane pricing.
New pricing will make it easier for mills to convert sugar to ethanol and the industry will have flexibility to move between sugar & ethanol production.
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He expects new tender to be launched immediately.
The Cabinet Cabinet Committee on Economic Affairs (CCEA) today fixed the delivered price of Ethanol in the range of Rs 48.50 per litre to Rs 49.50 per litre, depending upon the distance of sugar mill from the depot/installation of the public sector oil marketing companies (OMCs), an official statement said.
At 10:00 a.m.; Bajaj Hindusthan was at Rs 22.40, up 6.67 per cent, on the BSE. It surged 11.42 per cent to touch intraday high of Rs 23.40.
Balrampur Chini was at Rs 62.50, up 6.56 per cent, on the BSE. It surged 8.61 per cent to touch intraday high of Rs 63.70.
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Dhampur Sugar was at Rs 47.75, up 4.60 per cent, on the BSE. It surged 7.22 per cent to touch intraday high of Rs 48.95.
Dwarikesh Sugars was at Rs 34.95, up 6.23 per cent, on the BSE. It surged 12.45 per cent to touch intraday high of Rs 48.95.
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Shree Renuka Sugars was at Rs 17.80, up 5.64 per cent, on the BSE. It surged 10.97 per cent to touch intraday high of Rs 18.70.
Simbhaoli Sugars was at Rs 15.85, up 12.01 per cent, on the BSE. It surged 16.25 per cent to touch intraday high of Rs 16.45.
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