# India's sugar mills face margin squeeze as ethanol production restrictions and rising costs hit profitability: Crisil

> Crisil expects operating margins at Indian sugar mills to fall by 140–160 basis points to about 6% this fiscal year. Restrictions on ethanol production from sugar-based feedstocks, higher sugarcane procurement costs and increased borrowing needs are weighing on profitability, while firm sugar prices provide some support.

- Date: 2026-11-09 · published 2026-11-09T12:17:40.404Z
- Category: policy · region India · magnitude medium
- Page: https://feedsoft.ai/events/89428-india-s-sugar-mills-face-margin-squeeze-as-ethanol-production-restrictions-and
- Commodities: [DDGS](https://feedsoft.ai/c/DDGS.md), [Corn](https://feedsoft.ai/c/CORN.md)

## Why it matters

Restrictions on ethanol production limit mills’ higher-margin sales and weaken incentives to divert sugar-based feedstocks to fuel. This is chiefly a sugar-sector story; the article does not establish a direct effect on the listed feed commodities.

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| CORN | 2019-03-28 | [New record for U.S. ethanol production and exports in 2018 and an update on Iowa’s ethanol industry](https://feedsoft.ai/events/60116-new-record-for-u-s-ethanol-production-and-exports-in-2018-and-an-update-on-iowa.md) | -2.6% | -4.6% |
| CORN | 2023-04-26 | [The 2023 farm bill: Protecting US agriculture’s productivity, profitability and competitiveness](https://feedsoft.ai/events/36405-the-2023-farm-bill-protecting-us-agriculture-s-productivity-profitability-and.md) | -2.1% | -5.4% |
| CORN | 2025-07-28 | [Rate Difference in Grain-Based and Sugarcane-Based Ethanol Production Affecting Sector: Official – Outlook Business](https://feedsoft.ai/events/23740-rate-difference-in-grain-based-and-sugarcane-based-ethanol-production-affecting.md) | +0.5% | +0.7% |
| CORN | 2026-10-28 | [Indian distillers seek 9% corn ethanol price hike as feedstock costs surge \| World Ports Organization](https://feedsoft.ai/events/2890-indian-distillers-seek-9-corn-ethanol-price-hike-as-feedstock-costs-surge-world.md) | -0.5% | — |
| CORN | 2024-12-23 | [Govt may reduce reserve sale price for rice for ethanol production - GreenLeaf](https://feedsoft.ai/events/27019-govt-may-reduce-reserve-sale-price-for-rice-for-ethanol-production-greenleaf.md) | +0.5% | +6.9% |

## Sources

- economictimes.indiatimes.com: https://economictimes.indiatimes.com/news/economy/agriculture/indias-sugar-mills-face-margin-squeeze-as-ethanol-production-restrictions-and-rising-costs-hit-profitability-crisil/articleshow/135677857.cms

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