INSUBCONTINENT EXCLUSIVE:
Mumbai: Shares of sugar producers advanced in a falling market on Monday as investors bet on demand for the commodity remaining strong
despite the ongoing 21-day lockdown
Hopes of sugar producers in Uttar Pradesh securing permission from the state government to manufacture hand sanitisers also boosted
sentiment.
Rana Sugars gained 3 per cent to close at ?3.15, Balrampur Chini Mills ended in 10 per cent upper circuit at ?99, Dhampur Sugar
last 2-3 weeks so there is not much negative left
The demand is soft because of shutdown, large consumers like restaurants and malls are closed- but sugar price will not go down because it
government has asked sugar mills as well as distilleries to prioritise supply of ethyl alcohol, extra neutral alcohol (ENA) and ethanol
The Indian Sugar Mills Association has assured the hand sanitiser industry that adequate supply of ethanol and ENA will be made available to
them for the next 2-3 months.
The demand for ethanol has increased after the Covid-19 outbreak
Some UP-based sugar producers have also sought permission to produce hand sanitisers themselves
Some of the prominent sugar companies in the state are Balrampur Chini and Dhampur Sugar.
Some analysts said sugar stocks are gaining also
because they had fallen sharply during the meltdown in recent weeks
that on the offtake of ethanol, there is slight delay from oil marketing companies as petrol consumption has come down but that will also