For the past 2 weeks, all the sugar stock in my portfolio is going for a run. I was like okay what’s happening, why this sudden surge ??. And sugar stocks like Rana Sugar is up by 200%. I thought it’s because of rising in export, but 200% rise ??? well that’s something to know.
So I went straight to google for answers, well it turned out all this surge is because of a little change expected in the government policies. Our government of India is working on policies to mix 20% of ethanol in petrol by 2025. This move will cut the price of our oil imports. Currently, we are mixing around 8.5% of ethanol and by increasing the % we will save a lot of import and cost of petrol also can be reduced.
Ethanol has a high level of oxygen and it burns cleaner which will help to keep our environment clean. It can be produced from sugar canes, potatoes, corn, or any organic material which have lots of sugar content in it. Since India is one of the largest sugar producers, finding raw materials for ethanol will be at ease.
Since the new is out all sugar stocks are trading high, because more sugar used brings more profits to the company hence more money-making company. Small change will affect in a big way, like a butterfly effect.
In order to achieve these targets by 2025, we should set up new ethanol plans and set up the required infrastructure. Increasing the ethanol blending will not only save few dollars to the government but also make a revenue loss for the government. Since the government has huge money coming from the taxes on petrol.
All these changes will take their own time to be implemented, but the market is high on the news. And we have to strike the rod when it’s hot. So if you have invested in sugar stocks, time to make some money.
Yes, agreed. I made good profit by trading Andhra Sugars.
Nice, what other sugar stocks you hold ?
I’m not holding as of now. I took a swing trade. Im holding stocks from other sectors. Recently invested in Sumichem
How about you? Do you do swing trading or are you an investor?