# Sugar mills face 140-160 bps margin squeeze as ethanol earnings decline, cane costs rise: Crisil

> Indian sugar mills are projected to see operating margins fall by 140–160 basis points to around 6% this fiscal year. Crisil attributes the pressure to reduced ethanol production from sugar-based feedstocks, higher sugarcane procurement costs and increased funding needs, despite firmer sugar prices and projected revenue growth.

- Date: 2026-11-09 · published 2026-11-09T09:27:55.401Z
- Category: policy · region India · magnitude low
- Page: https://feedsoft.ai/events/89270-sugar-mills-face-140-160-bps-margin-squeeze-as-ethanol-earnings-decline-cane
- Commodities: [DDGS](https://feedsoft.ai/c/DDGS.md), [Corn](https://feedsoft.ai/c/CORN.md)

## Why it matters

Restrictions on ethanol production from sugar-based feedstocks reduce mills’ higher-margin ethanol sales, while rising cane costs add to pressure on their finances. The article does not establish a direct price effect for a listed feed commodity.

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| CORN | 2021-06-09 | [Exports, ethanol boost to sweeten sugar mill margins up to 100 bps](https://feedsoft.ai/events/46553-exports-ethanol-boost-to-sweeten-sugar-mill-margins-up-to-100-bps.md) | -1.4% | -1.4% |
| CORN | 2019-03-16 | [U.S. ethanol market sees first sales decline in decades](https://feedsoft.ai/events/60070-u-s-ethanol-market-sees-first-sales-decline-in-decades.md) | +2.6% | -3.5% |
| CORN | 2025-08-28 | [US corn group calls for higher ethanol blends amid rising input costs](https://feedsoft.ai/events/23457-us-corn-group-calls-for-higher-ethanol-blends-amid-rising-input-costs.md) | +3.6% | +9.0% |
| CORN | 2025-10-23 | [Corn ethanol set to overtake sugarcane’s long-standing dominance](https://feedsoft.ai/events/22397-corn-ethanol-set-to-overtake-sugarcane-s-long-standing-dominance.md) | +1.8% | +3.4% |
| CORN | 2026-09-10 | [American Ethanol Exports: Winning Global Markets for U.S. Biofuels](https://feedsoft.ai/events/17461-american-ethanol-exports-winning-global-markets-for-u-s-biofuels.md) | +3.2% | +1.6% |

## Sources

- devdiscourse.com: https://www.devdiscourse.com/article/business/4003825-sugar-mills-face-140-160-bps-margin-squeeze-as-ethanol-earnings-decline-cane-costs-rise-crisil

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