Shree Renuka Sugars, one of India’s key sugar producers, anticipates a 20 percent The goods and services tax (GST) on molasses has plummeted from 28% to just 5%. Molasses is a byproduct of sugar production. For listed sugar companies though, it would not move the needle. “GST cut on molasses will have little to no impact on sugar companies as there is limited third party purchases of molasses. Most of the molasses used for ethanol manufacturing is sourced internally,” said Prashant Biyani, vice president – institutional equity, Elara Capital. Thus, the impact on sugar companies would vary based on a sugar manufacturer’s reliance on external purchases.
Shree Renuka Sugars, one of India’s key sugar producers, anticipates a 20 percent Nevertheless, sugar stocks have seen a decent rally lately. Shares of Shree Renuka Sugars Ltd, Balrampur Chini Mills Ltd and Triveni Engineering & Industries Ltd have increased by around 25%, 11.4% and 39%, respectively, in the past three months.
