India's sugar stocks gain as govt advances proposal to blend ethanol to gasoline

Dhampur Sugar Mills

03/06/2021 05:55

** Shares of sugar manufacturers rise between 3% and 5%
after India advances proposal of 20% ethanol blend to gasoline
by two years
    ** The Indian govt will bring forward to 2023 from 2025 the
possibility of fuel companies selling gasoline containing up to
20% of ethanol  urn:newsml:reuters.com:*:nL5N2NK4VN
    ** The move from India towards use of ethanol is seen to cut
country's exportable surplus of sugar and raise global prices
 urn:newsml:reuters.com:*:nL5N2N54KH
    ** India is the world's second-biggest sugar producer and
the move will also help the country, one of world's biggest oil
consumer to reduce its dependence on costly crude imports
    ** Last year, India had set a target of reaching 10%
ethanol-blending by 2022 - meaning 10% of ethanol mixed with 90%
of gasoline
    ** Late last year, India cabinet announced a scheme to
attract about 400 bln rupees ($5.5 billion) in private
investment to expand India's capacity to produce ethanol from
sugar and grains
    ** Shares of Balrampur Chini  BACH.NS , Dalmia Bharat Sugar
and Industries  DLMI.NS , Triveni Industries  TREI.NS , Bannari
Amman Sugars  BANN.NS , Dhampur Sugar Mills  DAMS.NS , Shree
Renuka Sugars  SRES.NS  and Bajaj Hindustan Sugar  BJHN.NS  rise
between 3% to 5%
    ** Shares of Praj Industries  PRAJ.NS , which makes ethanol
plants, also surged 7.7% to 365.80 rupees

 (Reporting by Nallur Sethuraman in Bengaluru)
 ((Sethuraman.NR@thomsonreuters.com; (Within U.S.
1-646-223-8780, Outside U.S. +91 8067496031); Reuters Messaging:
nallur.sethuraman.thomsonreuters.com@reuters.net))