India's sugar mills losing their boozy bonus

India's sugar industry is staring down a significant profit squeeze, with ethanol income dropping off. The mills rely heavily on converting excess sugar into ethanol for fuel blending, a lucrative sideline that's now drying up. This shift is expected to compress their profit margins by 140 to 160 basis points.

For users, this could mean volatility in sugar prices and a potential slowdown in investments in cleaner biofuel infrastructure from the industry. The core takeaway is a major agricultural sector is losing a key revenue buffer, highlighting the complex interplay between food production, energy policy, and corporate bottom lines.