Renuka Sugars, Balrampur Chini: Sugar stocks turn sweeter on G20 biofuel initiative

Shares of sugar companies advanced up to 6 per cent in Tuesday’s afternoon trade after Prime Minister Narendra Modi on Saturday announced the Global Biofuels Alliance (GBA) that will accelerate sustainable biofuel deployment and support the global energy transition.

With a gain of 5.62 per cent, Renuka Sugars was the top gainer. It was followed by Kesar Enterprises (up 5.48 per cent) and Dalmia Bharat Sugar and Industries (up 5.43 per cent). Shree Hanuman Sugar & Industries, Balrampur Chini Mills, Dhampur Bio Organics and Dhampur Sugar Mills also rallied up to 5 per cent.

Sharing his view on Global Biofuels Alliance, VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services said, “Since there is a global consensus on sustainability and renewable energy, the Biofuel Alliance proposed at the G20 summit is likely to be taken up in right earnest. Since India is the second largest producer of sugar, after Brazil, the Indian sugar industry stands to gain from the decision to increase ethanol blending with petroleum products.”

“Sugar prices have gone up by around 3 percent during the last one month, the prospects for sugar companies have improved. But the good news is already in the price with many sugar stocks trading at 52-week highs," Vijayakumar said.

Biofuels, as a renewable energy source derived from plant and animal materials, play a critical role in progressing towards zero and low-emission development strategies. They symbolise a significant leap towards a greener and more sustainable future. They not only offer a viable alternative to non-renewable energy sources but also contribute to reducing greenhouse gas emissions, conserving biodiversity, and promoting rural development and job creation. Therefore, the global recognition of the importance of sustainable biofuels cannot be overemphasised.

Chandrajit Banerjee, Director General, CII said that the Global Biofuels Alliance is a collective movement for change. “It will unlock bioenergy access in emerging economies. A big step by India’s G20 presidency led by the PM to move towards low carbon economy,” he added.

“PM Modi’s leadership in G20 has mainstreamed discussions around clean and affordable bioenergy solutions,” said Banerjee.

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