Sugar Stocks that soar high up by 11% in December 2023

Published : 18 December 2023



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32 Sugar stocks soar by 11%

On Monday 18th December , 32 stocks in the sugar sector saw gains of up to 11% in morning trading.

Following the government's reversal of an order prohibiting the use of sugarcane juice to produce ethanol, trading increased. To manufacture the green fuel for the 2023–24 supply year, the government permitted the use of the juice and B–heavy molasses. The prohibition effective December 7 for the 2023–24 supply year (November–October) was anticipated to impact sugar producers' profits in FY25 negatively. The earlier choice was taken to monitor sugar prices and guarantee a sufficient supply for the home market.

Reason for rally

Sugar industry outlook

Net of diversion, sugar output is projected to reach 30.0–30.5 million metric tons in 2023–24, while domestic consumption is projected to reach 28–29 million metric tons.  If ethanol diversion is not included, 31.5–32 million tonnes of sugar are expected to be produced.