From Financialexpress · FE Bureau · · 40s
Sugar Stocks Drop After Govt Halts Ethanol Diversion
Sugar stocks plunge 6% as India stops sugar diversion for ethanol production.
In brief
Sugar stocks plunge 6% as India stops sugar diversion for ethanol production. India's sugar stocks fell 6% after government banned ethanol production using sugarcane juice, syrup and molasses for the 2026-27 supply year. Originally reported by Financialexpress.
Government Halts Sugar Diversion
Sugar stocks fell sharply after government imposed zero sugar diversion for ethanol production in 2026-27.
Stocks Decline 6%
Sugar stocks declined up to 6% as a result of the new rule.
Top Declining Companies
Shree Renuka Sugars and Magadh Sugar fell 6.4% and 6.21% respectively.
Ethanol Production Rules
Oil marketing companies barred ethanol made from sugarcane juice, sugar syrup and B-heavy molasses for blending in petrol.
What to remember
India's sugar stocks fell 6% after government banned ethanol production using sugarcane juice, syrup and molasses for the 2026-27 supply year.
