# Sugar Stocks Drop After Govt Halts Ethanol Diversion

> Sugar stocks plunge 6% as India stops sugar diversion for ethanol production.
- Title: Sugar Stocks Drop After Govt Halts Ethanol Diversion
- Summary: Sugar stocks plunge 6% as India stops sugar diversion for ethanol production. India's sugar stocks fell 6% after government banned ethanol production using…
- Keywords: sugar stocks, ethanol production, sugarcane juice, sugar syrup, b-heavy molasses, bharat petroleum corporation ltd, oil marketing companies, 2026-27 supply year, business, money, news, Sugar
- Source: Financialexpress — https://financialexpress.com/market/sugar-stocks-decline-after-government-halts-diversion-for-ethanol-production-4365102
- Author: FE Bureau
- Published: 2026-10-19T17:26:33+00:00
- Read time: 1 min
- Topics: sugar stocks, ethanol production, sugarcane juice, sugar syrup, b-heavy molasses, bharat petroleum corporation ltd, oil marketing companies, 2026-27 supply year, business, money, news
## 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.
## Key takeaway

India's sugar stocks fell 6% after government banned ethanol production using sugarcane juice, syrup and molasses for the 2026-27 supply year.