India Sugar Stocks Fall As Ethanol Diversion Halted

Indian sugar stocks declined in early trade on Monday after the government directed oil marketing companies to reduce sugarcane-based ethanol diversion to zero for the 2026/27 supply year.

The latest tender excludes supplies produced from sugarcane juice, syrup, and B-heavy molasses, cutting off an important higher-margin revenue source for sugar mills.

Shares of major producers including Balrampur Chini Mills, EID Parry, and Shree Renuka fell between 2% and 6% in morning trade.