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In today’s trading session, fertilizer stocks rallied while sugar stocks saw continued downward momentum.
Balrampur Chini traded 6.62% lower at Rs 403.20 per share while Shree Renuka Sugar dropped 4.36% to Rs 47.15. The decline came as reports suggested the Indian government may discourage ethanol production from sugarcane juice and B-heavy molasses during 2023-24 to boost sugar availability.
This initiative is part of the administration’s efforts to shore up domestic sugar supplies next season. However, it poses headwinds for sugar companies which have made large investments in ethanol distillation capacities over the past few years.
The proposed move had sparked a sell-off in sugar names like Balrampur Chini and Shree Renuka over the last two trading sessions highlighting growth concerns. Investors are advised caution amid the bearish sentiment.
Even as sugar stocks remained under pressure, fertilizer names were in heavy demand during today’s session.