Balrampur Chini, Triveni, Dhampur Sugar, Shree Renuka others: Ethanol volume uncertainties weigh on outlook

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Balrampur Chini Mills, Dwarikesh Sugar Industries, Dhampur Sugar Mills , Shree Renuka Sugar share prices have not seen much gains during last one year. Bajaj Hindusthan Sugar prices though have risen significantly, the same have been led by turnaround in its operations. The concerns in the recent past have weighed on diversion of Sugar to Ethanol production.

Government in order to control Sugar prices has not allowed significant diversion of Sugar. Hence the crushing season in Sugar year 2024 though may be showing favorable production trends , nevertheless the Balrampur Chini Mills, Dwarikesh Sugar Industries, Dhampur Sugar Mills , Shree Renuka Sugar share prices with exception of few manufacturers have not seen major gains. Sugar Year or Sugar Season starts from 1st October and ends on 30th September.

Also Read- Hindustan Petroleum Q4 results: HPCL to consider bonus equity share, earnings on May 9 According to the State-wise crushing data for Sugar Year 2024, sugar production stood at 31.6 MMT (million metric Tonne), which is lower compared to 32.2 MMT in the previous year at the same time, suggest Centrum Stock Broking data. Additionally, the total amount of sugarcane crushed has dropped to 313 MMT, a 4.3% decline, as contrasted to roughly 327 MMT in SSY23 over the same time frame. The state of UP has experienced a steep decrease and production is down 8.0% YoY due to lower sugar cane availability.

This has put pressure on country wide crushing numbers and is the reason for this decline. There is no major significant rise in production compared to a month ago. However there is some rise in production of Sugar from Maharshtra that has surprised as well as compensated for the loss in production from the state of UP.