Sugar stocks fall as India halts diversion to ethanol
In short
Indian sugar stocks fell up to 6% after the government said mills must stop diverting sugar to make ethanol.
Balrampur Chini Mills and Bajaj Hindusthan Sugar were among the names that dropped. The move may help sugar supply at home, but it could hurt mill earnings, and the length of the restriction is not clear.
What the reporting says
Indian sugar stocks fell up to 6% after the government told mills to stop diverting sugar for ethanol production. The reporting says Balrampur Chini Mills and Bajaj Hindusthan Sugar were among the companies hit, and the latest ethanol tender excludes supplies from sugarcane juice, sugar syrup and B-heavy molasses. The move is meant to improve domestic sugar availability as prices rise, but it may reduce a higher-margin outlet for mills. The exact duration of the curb is not stated.
Why it matters
Indian sugar stocks declined after the government directed mills to stop diverting sugar to ethanol production. The reporting says the latest ethanol tender excludes supplies made from sugarcane juice, sugar syrup and B-heavy molasses, cutting off a higher-margin sales channel. Balrampur Chini Mills and Bajaj Hindusthan Sugar were among the affected names. The policy is aimed at improving domestic sugar availability amid rising prices, but the duration of the restriction is not given.