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The Indian government has announced a halt on sugar-based ethanol supplies for the upcoming 2026-27 season, impacting sugar stocks significantly. Shares of Bajaj Hindusthan Sugar plummeted over five percent during early trades. The newly introduced procurement regulations ban the usage of sugarcane juice and B-heavy molasses for ethanol production. With a strategic pivot towards grain-based ethanol, the government aims to ensure steady sugar availability amid production uncertainties.
