Strong earnings growth ahead for listed sugar majors
Business Standard|August 31, 2024
Sugar stocks went up sharply on Friday on the news of a major policy change on ethanol as the industry gears up for the next crushing season.
DEVANGSHU DATTA
Strong earnings growth ahead for listed sugar majors

In December 2023, a cap was imposed on the quantum of sugar that could be diverted to produce ethanol to prevent a squeeze in sugar supplies ahead of the elections.

That cap has now been removed for the period November 1, 2024-October 31, 2025, which means sugar mills can fully exploit the opportunity for ethanol blending with petrol.

The notification allows sugar mills and distilleries to produce ethanol from sugarcane juice/sugar syrup, B-Heavy molasses, and C-Heavy molasses, according to their agreements with oil marketing companies.

The blend ratio targeted is 20 per cent (80 per cent petrol with 20 per cent ethanol) for Nov'24Oct '25, up from an estimated 14 per cent in Nov '23-Oct 24. The 20 per cent blend target will lead to an estimated demand for 9 billion (bn) litres of ethanol from the OMCS- one tonne of sugar can produce around one billion litres of ethanol.

هذه القصة مأخوذة من طبعة August 31, 2024 من Business Standard.

ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.

هذه القصة مأخوذة من طبعة August 31, 2024 من Business Standard.

ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.

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