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Below are Quote on Positive news for Praj Industries and other sugar companies by Mr. Yash Gupta Equity Research Associate, Angel Broking Ltd   

Ethanol blending in India is at 8.5% currently, up from 2% in 2017. In the last 3 years our ethanol blending has increased more than 4 times. Sugar companies always have an option to produce sugar from sugarcane or Ethanol for blending in petrol, in India we have a surplus capacity for sugar, Indian government provides export subsidiaries to sell sugar in the international market so as to indirectly help farmers.

Earlier the government has set up a visionary target of ethanol blending of 10% in 2022 and 20% in 2030 and then this year the target of 20% blending has been shifted from 2030 to 2025. But now the government has shifted the 20% blending target from 2025 to 2023.

This target will help companies like Praj Industries as several companies will set up new capacity for processing ethanol. Along with this major benefissory of this announcement will be the sugar manufacturing company as we have seen that the realization in ethanol is greater than the realization of sugar. So by selling more and more ethanol their profitability will increase. We have a positive outlook for Balrampur chini mills and Praj Industry.

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