Indian sugar stocks fell up to 7% after the government stopped sugar being diverted for ethanol in the 2026/27 supply year.

The latest ethanol tender excludes supplies made from sugarcane juice, sugar syrup and B-heavy molasses.

Bajaj Hindusthan Sugar fell over 7%, and Shree Renuka declined more than 6%.

Balrampur Chini dropped 4%, Triveni Engineering over 3%, and EID Parry and Dhampur over 2% each.

The move aims to raise domestic sugar supply and ease record-high prices in India.

It removes mills’ flexibility to shift cane between sugar and ethanol for better returns.

The 16 October tender seeks about 11 billion litres of ethanol for 20% blending in petrol.

It also cut the maize-based ethanol price to Rs 68.86 per litre from Rs 71.86.

Read the full article for more details on the sugar stocks slide.