Sugar stocks gained as much as 15% on Thursday following the Cabinet Committee on Economic Affairs’ (CCEA) decision to fix a price of Rs 48.5-49.5 for ethanol procurement by Oil Marketing Companies (OMCs).
Among the sugar stocks, Simbhaoli Sugars (15.1%), Balrampur Chini (6.1%), Shree Renuka Sugars (6.2%), Bajaj Hindusthan (6.4%) and Dhampur Sugar Mills (3%) were the major gainers.
The CCEA today (Wednesday) fixed the delivered price of Ethanol in the range of Rs 48.50 per litre to Rs 49.50 per litre, depending upon the distance of sugar mill from the depot/installation of the public sector oil marketing companies (OMCs), an official statement said.
For the distance ranging from 0-100 kms price is fixed at Rs 48.50 per litre, for 101-300 kms price will be around Rs 49.00 per litre and for the distance more than 300 kms price will be around Rs 49.5 per litre, the statement added.
“The rates proposed would be delivered price at depot location and inclusive of all Central and State taxes, transportation costs, etc which would be borne by the Ethanol suppliers,” it added.