Most of sugar stocks fell today even as the government hiked ethanol price by almost Rs 3 per litre in a bid to give higher price for sugarcane.
Balrampur Chini fell 0.82 per cent to Rs 66.25, Shree Renuka Sugars slipped 1.57 per cent to Rs 12.55, Bajaj Hindushtan Sugar dipped 2.32 per cent to Rs 6.74, Thiru Aroonan Sugars tanked 2.39 per cent to Rs 26.55.
However, Dhampur Sugar advanced 0.89 per cent to Rs 84.80.
The government today decided to raise price of ethanol, used for doping in petrol, by almost Rs 3 per litre to Rs 43.70 in a bid to cut India's oil import dependence as well as give higher price for sugarcane.
The sugar industry and even NCP supremo Sharad Pawar had demanded a higher ethanol price to improve the liquidity of cash-starved mills and enable them clear cane arrears.
Sugar mills are incurring losses as prices have fallen below production cost on account of record output of 31.5 million tonne in 2017-18 season as against the annual domestic demand of 25 million tonne.
The higher price for this grade of ethanol produced from C-molasses will be for ethanol marketing year starting December 2018, acording to Finance Minister Piyush Goyal.
Oil marketing companies procure ethanol from sugar mills for blending with petrol. Mills are expecting revenue realisation of over Rs 5,000 crore from sale of ethanol to OMCs during the 2017-18 sugar season (October-September).
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)