# Sugar mills face 140-160 bps margin squeeze as ethanol cushion thins

> A rating analysis says Indian sugar mills face margin pressure from a near-halt in sugar-based ethanol output, higher cane prices and rising funding costs. Sugar production for SS2027 is expected to fall to about 29 million tonnes from 31.1 million a year earlier.

- Date: 2026-11-12 · published 2026-11-13T03:14:35.230Z
- Category: policy · region India · magnitude low
- Page: https://feedsoft.ai/events/97089-sugar-mills-face-140-160-bps-margin-squeeze-as-ethanol-cushion-thins
- Commodities: [Ethanol](https://feedsoft.ai/c/ETHANOL.md)

## Why it matters

Lower Indian sugar and ethanol output reduces molasses-based supply and tightens ethanol availability, supporting ethanol prices. The effect on feed commodities is limited.

## Read by commodity

- ETHANOL: bullish ▲

## Sources

- agrospectrumindia.com: https://agrospectrumindia.com/news/112/35133/sugar-mills-face-140-160-bps-margin-squeeze-as-ethanol-cushion-thins.html

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