Sugar shares surged more than 3 per cent on the BSE after the government advanced the ethanol blending programme by two years to 2023 in an attempt to reduce India's dependence on oil imports. At 12:55 pm, Balrampur Chini Mills, Triveni Engineering & Industries, EID Parry (India), Dhampur Sugar Mills and Dwarikesh Sugar Industries rose around 3 per cent each on the BSE.
Last year, the government had set a target of reaching 10 per cent ethanol-blending in petrol by 2022 and 20 per cent doping by 2030. Earlier this year, the target for 20 per cent blending was brought forward to the year 2025 and this has now been advanced to April 2023.
Sugar stocks have also been bullish in the recent past due to increase in Indian sugar exports as Brazil, which is the largest producer and exporter of sugar, is facing the worst sugar production in 91 years.
The BSE Sensex and NSE Nifty were trading higher by 0.3 per cent each at the time.