Sugar stocks surge after India announces global biofuel alliance at G20

Shares of sugar producers came under buying interest by investors after India announced global biofuel alliance at a G20 summit to boost the use of cleaner fuels. Shares of sugar makers surged on hopes that global alliance for biofuel will create additional demand for molasses which is used as raw material to make ethanol.

Shares of Shree Renuka Sugar rose 4.8 per cent to close at Rs 54.49. EID Parry advanced 2.36 per cent, Dalmia Sugar rose 4.12 per cent, Sakthi Sugar advanced 4.9 per cent, Bajaj Hindusthan advanced 1.42 per cent, Dwarikesh Sugar added 1.9 per cent, Avadh Sugar rose 0.9 per cent and Rana Sugars rose 1.27 per cent.

The alliance, with the United States and Brazil as its founding members, would help accelerate global efforts to meet net zero emissions targets by facilitating trade in biofuels derived from sources including plant and animal waste.

"We are launching the Global Biofuel Alliance. India invites all of you to join this initiative," Prime Minister Narendra Modi said in his remarks to leaders from the Group of 20 major economies at the summit.

The push for a biofuels alliance mirrors the International Solar Alliance launched by New Delhi and Paris in 2015 to bring clean and affordable solar energy within the reach of all.

Last month, Toyota introduced the world's first flex-fuel car, powered entirely by ethanol and equipped with a flex-fuel engine. This innovative model, built on popular MPV Innova HyCross, was officially launched today by Union Minister Nitin Gadkari.

(With Reuters inputs)