Sugar stocks surge on Ethanol push, analysts see more upside

The government’s notification removes the limit that exists on the diversion of sugar for ethanol production. “Since ethanol is a high-yielding product, this removal of cap would help the sugar mills and distilleries to manufacture more ethanol and improve their revenue mix directly, which will improve cash flows and stabilize the sugar industry,” said T Manish, research analyst, Samco Securities.

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