Sugar #stocks have been rallying heavily over the past few weeks. And it seems like this has a whole lot to do with a chemical compound that's been all over the news lately.

We're talking about ethanol.

(thread...)

👉Ethanol is a complex derivative that can be extracted while processing sugarcane. It can be extracted from sugarcane juice and even from the likes of corn, bamboo, & rotten potatoes.

💡But what is really unique about #Ethanol is- it has high levels of oxygen, it burns cleaner than your everyday fuels like petrol or diesel. And thankfully for us, India has consistently had a surplus sugar production.

However, the surplus sugar also had its downside in that it sometimes caused the prices to dip. This forced the govt to provide export subsidies to help the farmers & sugar cos.

👉But now the government hopes to kill three birds using one stone. They see an opportunity in using ethanol and to make cleaner fuel, reduce oil imports as well as help our sugar industry.