Sugar Stocks Slide as India Halts Sugar-Based Ethanol Supplies for 2026-27

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India's government has announced it will stop sugar-based ethanol supplies for the 2026-27 season, which has weighed heavily on sugar company shares. Bajaj Hindusthan Sugar shares fell by more than five percent in early trading. New procurement rules prohibit the use of sugarcane juice and B-heavy molasses in ethanol production. Authorities are shifting toward grain-based ethanol instead. The aim is to keep sugar supplies steady despite uncertainty in production.

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