# Govt Curbs Sugar Diversion For Ethanol, Mills Warn Of Losses During Surplus Year

> India's government excluded ethanol made from sugarcane juice, sugar syrup and B-heavy molasses from its latest oil marketing procurement tender. Sugar mills warn that a prolonged exclusion could strain finances during a surplus year.

- Date: 2026-10-31 · published 2026-10-31T10:05:39.264Z
- Category: policy · region India · magnitude low
- Page: https://feedsoft.ai/events/2896-govt-curbs-sugar-diversion-for-ethanol-mills-warn-of-losses-during-surplus-year
- Commodities: [DDGS](https://feedsoft.ai/c/DDGS.md)

## Why it matters

Curbs on sugar-based ethanol diversion keep more sugar on the market, which is bearish for sugar and molasses-based feed inputs, with limited direct effect on grain feed.

## Sources

- coinsinsight.com: https://coinsinsight.com/1111832533/Govt-Curbs-Sugar-Diversion-For-Ethanol-Mills-Warn-Of-Losses-During-Surplus-Year

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.