Shares of Globus Spirits surged by 17% on Monday after the company announced that the Ministry of Consumer Affairs had reduced the price of rice supplied to ethanol distilleries. This move is expected to lower production costs for companies that use rice or rice by-products in making certain alcoholic beverages, such as spirits.
Globus Spirits’ stock was trading at Rs 926 per share, up 16.35% from the previous session. Other liquor stocks also saw gains, including United Breweries, Radico Khaitan, Som Distilleries, and Allied Blenders and Distillers.
The price of rice for ethanol production was reduced from Rs 28 per kilogram to Rs 22.50 per kilogram, which could lead to lower costs for distilleries using rice in their production. This change is seen as a positive development for ethanol producers, especially those relying on grain-based distillation for fuel blending.
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The reduction in rice prices is part of the government’s efforts to boost sales and support food security, as well as ensure a steady supply of raw materials for ethanol production. The new price will be in effect until June 2025, and the policy is expected to benefit established players in the ethanol and alcoholic beverage sectors.
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