Shree Renuka Sugars, Balrampur Chini Mills: Sugar stocks rally over 7.5%; here is why

Joshi said the proposal on hiking the ethanol price is under consideration of the government. The petroleum ministry is looking into the matter.

Speaking to reporters, the minister also mentioned that the government is "considering a proposal to increase the minimum selling price of sugar,"  which remains unchanged at ₹31 per kg, a rate established in February 2019.

Joshi also said the sugar production looks good for the 2024-25 season (October-September) on account of a good monsoon.

Ethanol prices, fixed by the government, have not been hiked since the 2022–23 ethanol supply year (November–October).

Currently, ethanol produced from cane juice is priced at ₹65.61/litre, while rates for ethanol from B-Heavy and C-Heavy molasses stand at ₹60.73/litre and ₹56.28/litre, respectively.

Among individual names, Shree Renuka Sugars was trading 7% higher at ₹51.50 apiece on the BSE, while Triveni Engineering and Industries was trading nearly 4% higher at ₹489.80. Balrampur Chini Mills was trading around 7.5% higher at ₹658.50.

Praj Industries shares were trading o7.54% higher at ₹817.45 apiece on the NSE.

In August this year, the food ministry said that it plans to revamp the nearly six-decade-old regulation regarding production, storage, and pricing of sugar to align it with technological advancements.

In this regard, the Ministry of Consumer Affairs, Food, and Public Distribution has issued the draft 'The Sugar (Control) Order, 2024'.

The ministry proposes to review the Sugar (Control) Order of 1966 due to the technological advancements in the production process.

"...there are multiple changes in the sugar sector that necessitate the revamping of the existing Sugar (Control) Order, 1966," said the ministry while issuing the draft.