With the pacing popularity of the stock market, many investors run a deep analysis about the kind of stocks that would enrich their portfolio.
In recent months, Sugar stocks have delivered massive returns of up to 150% in just a few months.
Let’s understand what Sugar stocks are.
They are associated with industries that focus on manufacturing sugar and related products like bioethanol, bagasse, molasses, and press mud.
So, why are Sugar industries performing so well in the market nowadays?
It is because a new technology concerned with ethanol has been introduced. This involves the mixing of ethanol with petrol to make an eco-friendly. Sugar industries make copious amounts of ethanol while processing sugarcane.
Prime Minister Narendra Modi has been planning to gradually increase the percentage of ethanol in petrol every five years.
This idea will benefit the sugar manufacturing companies to a great extent. Few examples of sugar stocks are; EID Parry, Dhampur Sugar, Praj Industries, etc.