Rana Sugars Ltd Management Discussions

GLOBAL ECONOMIC OVERVIEW

The global economy, after demonstrating resilience amid elevated trade barriers and heightened global uncertainty in the previous year, faces a significant challenge following the outbreak of conflict in the Middle East. Assuming that the conflict remains limited in both duration and geographical scope, global economic growth is projected to moderate to 3.1% in 2026 before improving marginally to 3.2% in 2027. Global headline inflation is expected to edge up modestly in 2026, driven by supply-side disruptions and higher energy prices, before resuming its downward trajectory in 2027. The adverse impact of slower growth and elevated inflation is expected to be more pronounced across emerging market and developing economies, reflecting their greater vulnerability to external shocks and tighter global financial conditions. Absent the conflict in the Middle East, global growth for 2026 would have been revised upward to 3.4%, supported by stronger economic data and easing trade tariffs. However, the war has significantly weakened the outlook, leading to a downward revision in global growth projections. While advanced economies remain broadly unaffected, the impact is considerably more severe for emerging market and developing economies, particularly commodity-importing nations with existing economic vulnerabilities. These economies are expected to experience slower growth, higher inflationary pressures, and greater exposure to external shocks, underscoring the uneven global impact of the conflict. According to the IMFs World Economic Outlook projects global economic growth to moderate from 3.4% in 2025 to 3.1% in 2026, before improving slightly to 3.2% in 2027, reflecting persistent geopolitical tensions and economic uncertainties. Advanced economies are expected to witness slower growth, with the Euro Area, Japan and the United Kingdom remaining subdued, while the United States is projected to maintain relatively stable growth. Emerging Market and Developing Economies are forecast to grow at 3.9% in 2026, recovering to 4.2% in 2027, led by resilient performance in Asia. India is expected to remain the fastest-growing major economy, with GDP growth projected at 6.5% in both 2026 and 2027. Overall, the outlook indicates a gradual recovery in global growth, although downside risks from geopolitical conflicts, trade disruptions and inflationary pressures continue to pose significant challenges. Global sugar prices continue to reflect a divergence between the raw and white sugar markets. White sugar prices have strengthened significantly due to limited availability of refined sugar and expectations of a global white sugar deficit of around 1.24 million tons in the first half of 2027, driven largely by Indias continued restrictions on sugar exports. Additional uncertainty over export supplies from Pakistan and Algeria, coupled with firm demand from Africa, the Middle East and Central Asia, has further widened the premium for refined sugar. In contrast, raw sugar prices remain under pressure due to ample global supplies, particularly from Brazil and Thailand. Higher sugar production in Brazils Centre-South region, supported by improved sugarcane yields, has contributed to a projected global surplus of around 2 million tons of raw sugar exports during the second to fourth quarters of 2026. However, subdued import demand, comfortable inventories in key importing countries, and lower raw sugar imports by China have limited any meaningful recovery in raw sugar prices despite their attractive levels. ( Source: IMF, World Economic Outlook April 2026, USDA, www.chinimandi.com )

2024/25 Sugar Overview

Global sugar production in 2026/27 is projected at 184.9 million tonnes, marginally lower than the previous year, as reduced output in Brazil, Thailand, the European Union, and the United States more than offsets the recovery in Indias production. India is expected to produce 33.6 million tonnes, supported by favourable monsoons, improved yields, and increased cultivation area, reinforcing its position as the worlds second-largest sugar producer after Brazil. Brazil, despite remaining the largest producer, is expected to witness lower sugar output as a greater share of sugarcane is diverted towards ethanol production in response to strong domestic biofuel demand. Global sugar consumption is expected to remain broadly stable, supported by steady demand across both developed and emerging economies. Countries such as China continue to maintain stable consumption through government support for domestic production, while several developing regions in Africa, the Middle East, and Asia continue to drive import demand. The sugar sector remains strategically important to global food security, rural livelihoods, and the biofuel industry, with government policies in major producing countries playing a significant role in balancing domestic availability and price stability. Global sugar trade is expected to remain active, although total exports are projected to decline marginally to 62.3 million tonnes owing to lower shipments from Brazil, the European Union, Morocco, and Pakistan. Higher exports from Australia and increased shipments from India are expected to partially offset this decline. On the import side, global trade flows continue to be influenced by changing production patterns, trade policies, and inventory levels, with countries maintaining imports to meet domestic consumption requirements where local production is insufficient. The global sugar industry continues to play a vital role in the world economy by supporting millions of farmers, generating export earnings, and supplying raw material to the food, beverage, pharmaceutical, and renewable energy sectors. International sugar trade remains highly sensitive to weather conditions, government regulations, and biofuel policies, making sugar one of the key globally traded agricultural commodities influencing both food and energy markets. ( Source: USDA, Sugar: World Markets & Trade )

INDIAN ECONOMIC REVIEW

Indias economy is projected to grow by 6.6% in FY 2026-27, according to the World Bank, despite headwinds from higher global energy prices, geopolitical tensions in the Middle East, and supply chain disruptions. The report notes that India remains one of the fastest-growing major economies globally, supported by strong macroeconomic fundamentals, including substantial foreign exchange reserves, a healthy financial sector, low inflation, predominantly rupee-denominated public debt, and diversified trade. The Government continues to focus on enhancing ease of doing business through tax reforms, digital governance, infrastructure modernization, MSME support, and measures to attract foreign investment. India is also strengthening its global economic position through new Free Trade Agreements (FTAs) and strategic partnerships, reinforcing its role as a key driver of global growth. India remained the fastest-growing major economy in 2025-26, with real GDP growth accelerating to 7.6% from 7.1% in the previous year, despite global uncertainties and higher US tariffs. Economic growth was driven primarily by strong domestic demand, with private consumption growing by 7.7% and gross fixed capital formation increasing by 7.1%, supported by sustained government capital expenditure and improving private investment. The services sector remained buoyant, while industrial activity strengthened, reinforcing overall economic momentum. The impact of external trade disruptions remained limited, with net exports exerting only a marginal drag on growth. Higher domestic savings, fiscal consolidation, and an upgrade in Indias sovereign credit rating further enhanced macroeconomic stability and strengthened investor confidence. India has set an ambitious target of achieving US$1 trillion in total exports in FY 2026-27, comprising US$530 billion in merchandise exports (around 17% growth) and US$470 billion in services exports (around 11% growth). Total exports stood at US$863 billion in FY 2025-26, including US$442 billion of merchandise exports and US$421 billion of services exports. According to the Government, export growth of nearly 15% in the first quarter indicates that India is on track to achieve the annual target. The Government expects recently concluded Free Trade Agreements (FTAs) with the UAE, Oman, and the United Kingdom, along with agreements covering several developed markets, to enhance market access and boost exports. Continued policy support through export promotion, branding initiatives, export facilitation, ease of doing business, and infrastructure improvements is expected to strengthen Indias competitiveness and drive export-led economic growth. Indias inflation remained well under control during FY 2025-26, supported by the Flexible Inflation Targeting (FIT) framework, under which the Government retained the headline CPI inflation target at 4% with a tolerance band of 2%–6% for the period 2026–2031. Headline CPI inflation moderated sharply to an average of 2.0% in FY 2025-26, driven by benign food prices, GST rationalisation, and favourable supply conditions, while inflation remained below the lower tolerance band during parts of the year. With inflation easing and growth remaining resilient, the Monetary Policy Committee (MPC) reduced the repo rate by 25 basis points to 5.25% in December 2025 after earlier rate cuts, while maintaining a neutral and data-dependent policy stance. The RBI projects inflation to gradually normalise to around 4% during FY 2026-27, balancing price stability with support for economic growth amid evolving global uncertainties.

(Source: www.worldbank.org, apcoworldwide.com, RBI Annual Report 2025-26, www.business-standard.com)

Indian Cane Sugar Industry Outlook

The Indian cane sugar market was valued at USD 55.40 billion in 2025 and is projected to reach USD 70.13 billion by 2031, growing at a CAGR of 4.01% (2026–2031). Government support for ethanol blending, abundant sugarcane availability, and steady demand from the food processing industry are the key growth drivers. Sugar mills are increasingly diversifying into ethanol production, improving profitability and reducing dependence on sugar price fluctuations. Investments in precision farming, micro-irrigation, and AI-enabled cane management are enhancing productivity and operational efficiency. While rising health concerns are encouraging demand for low-sugar and organic products, consumption from the beverage, bakery, and dairy sectors continues to support overall market growth.

Expansion of Agro-Processing Units

The Uttar Pradesh government has allocated USD 224.75 million to expand sugar mill capacities, marking a strategic investment aimed at improving the sectors operational efficiency. This initiative aligns with advancements in sugar processing technology, including the implementation of Computer Integrated Manufacturing systems, which enhance production efficiency and quality control, as noted by the Technology Information Forecasting and Assessment Council. Additionally, artificial intelligence is revolutionizing sugarcane farming practices, enabling farmers to increase yields from 50-60 tons to 65-75 tons per acre while reducing water usage by 35-45%. On the sustainability front, zero-emission processing plants, such as the innovative facility in Assam, are establishing new benchmarks that may influence regulatory standards and consumer preferences.

Expanding industrial sugar demand from beverages and processed foods

Indias food processing industry is projected to reach USD 700 billion by 2030, significantly boosting demand for industrial sugar. Rising disposable incomes in Tier II and III cities are driving consumption of processed foods, beverages, and confectionery products. Demand for pharmaceutical-grade and liquid sugar is increasing due to its superior quality and processing advantages. The bakery, confectionery, dairy, and frozen food sectors continue to support higher sugar consumption. Additionally, growing demand for organic and specialty sugar variants is creating premium market opportunities.

Rising Interest in Ethanol Blending

By 2025-26, the governments goal of achieving a 20% ethanol blending target has transformed sugar mills into integrated bio-refineries. Ethanol production has evolved from being a secondary by-product to a key profit driver. The allocation of 4 to 4.5 million tonnes of sugar for ethanol during the 2024-25 crushing season highlights this major shift. This transition necessitates efficient supply chain management to balance domestic sugar requirements with biofuel objectives. Additionally, the government has introduced premiums of INR 6.87 per liter for C-heavy molasses ethanol production. These measures enhance mill profitability and facilitate timely payments to farmers. However, policy inconsistencies regarding the use of sugarcane juice for ethanol have created uncertainty. Industry associations are advocating for stable, long-term policies to support sustained investments in distillery infrastructure.

Geography Analysis

North India remains the largest sugar-producing region, accounting for 38.12% of the market, led by Uttar Pradesh, which produces over 177 million tonnes of sugarcane annually. Strong government support, extensive cooperative mills, and increasing ethanol production continue to drive regional growth, despite periodic production challenges caused by crop diseases. West India is the fastest-growing region, projected to expand at a CAGR of 6.21% through 2031, led by Maharashtras advanced processing technologies, high recovery rates, precision farming, and sustainable manufacturing practices. The regions focus on ethanol production, efficient water management, and proximity to industrial markets further strengthens its competitive position. South and East India continue to strengthen their presence in the sugar industry. South India, led by Karnataka and Tamil Nadu, benefits from high cane productivity, advanced irrigation, expanding mill capacities, and strong export infrastructure. East India, though the smallest market, is witnessing gradual growth through government support, new sugar mill initiatives, and sustainable projects such as Assams zero-emission processing plant.

Rising anti-sugar health regulations

Indias sugar industry is undergoing a transformation as the Food Safety and Standards Authority of India (FSSAI) introduces stricter regulations on sugar content in food and beverages. Under the revised norms, products can be labelled as low sugar only if they contain less than 5 g of sugar per 100 g, reflecting the countrys growing focus on addressing lifestyle diseases, particularly diabetes. The proposed regulations on high fat, sugar and salt (HFSS) foods are encouraging manufacturers to reformulate products and reduce sugar content. At the same time, demand for specialty sugars and natural sweeteners, such as Monk fruit, is increasing, creating new growth opportunities. These regulatory developments are also expected to enhance the competitiveness of Indian food products in global markets by aligning them with evolving international health and nutrition standards

High Price Volatility

The Indian sugar industry continues to face financial and operational challenges due to the mismatch between rising Fair and Remunerative Price (FRP) for sugarcane and relatively stagnant Minimum Support Prices (MSP) for sugar, putting pressure on mill profitability. The sector also remains highly vulnerable to climatic and biological risks, as reflected in Uttar Pradeshs 15–

25% decline in sugar production during 2023–24, caused by floods and red rot disease. The continued non-implementation of the dual pricing policy recommended by the Commission for Agricultural Costs and Prices (CACP) has further contributed to financial uncertainty and constrained long-term investment decisions. Additionally, the 2024–25 sugar export quota of 1 million tonnes, significantly lower than historical levels, has limited export opportunities and affected revenue planning for sugar producers. (Source: Mordor Intelligence)

Adequate Sugar Stock

The Indian Sugar & Bio-energy Manufacturers Association (ISMA) and the National Federation of Cooperative Sugar Factories (NFCSF) have affirmed that India has adequate sugar stocks to comfortably meet domestic demand and have urged market participants to avoid panic buying, hoarding, or speculative trading. In consultation with the Government, the industry has agreed to commence the 2026–27 crushing season at the earliest feasible date, ensuring timely availability of fresh sugar and maintaining stable market supplies. ISMA and NFCSF stated that the recent rise in sugar prices is not supported by demand–supply fundamentals and warned that creating a false perception of scarcity could lead to unnecessary market volatility and disrupt normal trade. While ISMA revised its 2025–26 gross sugar production estimate to 32 million tonnes, the USDA forecasts Indias sugar production to recover by around 12% to nearly 33.6 million tonnes in 2026–27, supported by improved sugarcane availability and higher recovery rates despite weather-related challenges in the previous season.

(Source: Economic Times)

Sugar exports may be capped, surplus stocks to be diverted to Ethanol

The Government has clarified that there is currently no proposal to ban sugar exports, although exports may be capped if the approved quota of 1.5 million tonnes is not fully utilised. Any unexported surplus is likely to be diverted towards ethanol production or retained as closing stock, supporting domestic supply management and the ethanol blending programme. Export volumes continue to face challenges due to export parity, despite recent strengthening of global sugar prices. India has already achieved 20% ethanol blending, and the Government is evaluating the possibility of increasing the blending ratio through a committee comprising officials from the Ministries of Petroleum & Natural Gas, Food, and Heavy Industries. With an ethanol production capacity of around 2,000 crore litres, the Government is also exploring additional applications, including flex-fuel vehicles. Since 2014–15, the ethanol blending programme has reportedly generated foreign exchange savings of approximately 1.65 lakh crore by reducing crude oil imports.

On the domestic front, sugar prices have remained largely stable, recording inflation of only around 3%, with no significant price spike expected. Net sugar production after ethanol diversion is estimated at 320–325 lakh tonnes, with nearly 35 lakh tonnes expected to be diverted for ethanol production. The Government also confirmed that the industrys demand for an increase in the Minimum Selling Price (MSP) is under consideration and that a decision will be taken at an appropriate time. (Source: www.Chinimandi.com)

GLOBAL SUGAR SECTOR OVERVIEW

The global sugar sector is projected to witness a marginal decline in production during the year, with total output forecast at 184.9 million tonnes, down by 1.2 million tonnes. Lower production in Brazil, the European Union, the United States, and Thailand is expected to outweigh the increase in Indias sugar production. Global sugar exports are also forecast to decline slightly to 62.3 million tonnes, while ending stocks are expected to rise modestly, primarily due to higher inventories in China and India. Brazil, the worlds largest sugar producer and exporter, is expected to produce 42.5 million tonnes, down by 1.3 million tonnes. The decline is mainly attributed to a greater share of sugarcane being diverted towards ethanol production, supported by strong domestic ethanol demand and the increase in the ethanol blending mandate in gasoline from 27% to 30%. Consequently, Brazils sugar exports are also expected to soften. In the European Union, sugar production is forecast to decline to 14.4 million tonnes due to reduced sugar beet acreage, as growers shift to alternative crops amid weak sugar prices and elevated input costs. Thailands production is also expected to fall significantly to 9.5 million tonnes, primarily because of reduced cane cultivation following lower farm-gate prices announced by the government. While exports from both regions are expected to decline, domestic consumption is likely to remain broadly stable.

On the other hand, India is expected to register higher sugar production, partially offsetting declines in other major producing regions. Chinas production is forecast to remain stable at 12.7 million tonnes, supported by favourable growing conditions and continued government support through subsidies, mechanization, and improved cultivation practices. As a result, both India and China are expected to contribute to the slight increase in global sugar inventories. (Source: USDA, Sugar: World Markets and Trade)

Global Sugar Demand, Production and Consumption

Global sugar demand is projected to strengthen mainly in South and Southeastern Asia and Africa over the next decade, driven by population growth, rapid urbanisation and rising disposable incomes. Combined, these regions will account for virtually all of the worlds consumption growth over the next decade. Demand growth in Africa and Asia is expected to be primarily driven by population expansion, with per capita sugar consumption projected to rise by 4% and 13%, respectively, although levels are projected to remain well below the level in high-income countries. On the supply side, Brazil and India will continue to dominate the global sugar market. Brazil is expected to further strengthen its leading position through operational efficiencies and expanded capacity while India is anticipated to increase output through agronomic improvements and higher sucrose recovery rates. Together, these two countries are expected to account for 42% of global sugar output, heavily impacting global price dynamics over the coming decade. Sugar markets will remain subject to many uncertainties, mainly future demand dynamics in Asia and Africa and extreme weather-driven production risks. While a shift toward processed foods and confectionery products is anticipated, heightened health awareness together with stricter health regulations and sugar consumption taxes would alter demand projections. While a productivity recovery is anticipated in the baseline, it remains unclear if major producers can overcome recent extreme weather-driven yield declines. In addition, flexibility between sugar and ethanol production is a key uncertainty of the sugar sector, particularly in Brazil and India. World sugar consumption is expected to increase slightly in 2025/26 compared with the previous season, amid prospects for relatively steady global economic growth in 2026 and lower sugar prices. The expansion in consumption is expected to be largely supported by population driven demand growth in Africa, while demand developments in Asia are expected to be underpinned by continued population growth and the food and beverage industry. Over the next ten years, global sugar consumption is projected to expand by 1% p.a. to reach 199 million tonnes (Mt) by 2035, largely driven by population growth. Global average per capita consumption is projected to increase only marginally, rising by about 2% compared with the base period (October 2023-September 2026). This global average masks significant regional differences, with consumption growth concentrated in Asia and Africa, while demand in other regions is expected to stagnate or decline. With the projected rapid growth in population and income in Asia, and in population in Africa, the two regions are expected to account for virtually all of the increase in global demand compared to the reference period (October 2023-September 2025), at 76% and 28% of the world total growth, respectively, more than compensating for stagnant or declining demand in other regions. In both regions, per capita consumption is anticipated to remain significantly below the level in high-income countries by 2035. Global sugar trade in 2025/26 is expected to remain broadly stable. While Thailands sugar exports are projected to increase and Brazils exports are expected to remain steady, lower shipments from the European Union may partly offset these gains. On the import side, Indonesia and China are expected to remain the largest importers, whereas U.S. imports are likely to decline due to higher domestic production. Global sugar production in 2025/26 is expected to recover, led by higher output in India, Thailand, and China following improved weather conditions and better crop yields. Brazils production is likely to remain broadly stable, although the final outcome will depend on harvest progress and the sugar-ethanol production mix. The increase in these major producing countries is expected to more than offset the decline in the European Union, where reduced sugar beet acreage is likely to lower production. Global sugar production is expected to grow from 181 Mt during the base period to 203 Mt by 2035, 60% of the growth will come from Asia and 30% from Latin America. Asia will remain the leading sugar-producing region. India, Thailand, Pakistan and China are expected to provide the largest shares of the regions total sugar supply, increasing their sugar production, respectively, by 6.2 Mt, 2.5 Mt, 1.8 Mt and 1.2 Mt by 2035 compared to the base period. In India, sugar production is expected to grow at a slightly higher growth rate than in the past decade. In Thailand, Pakistan and China, governments are pursuing policy initiatives relevant to the sugar sector, including Thailands Bio-Circular-Green (BCG) model within a broader sustainability framework, Pakistans planned deregulation to enhance efficiency and capacity utilisation, and Chinas subsidies for industrial upgrading. (Source: OECD FAO Agricultural Outlook 2026 2035)

Global Sugar Price Trends

International prices of sugar have generally declined since the start of the 2025/26 season in October, reaching in February 2026 their lowest level since October 2020. The decline has been driven mainly by expectations of ample global sugar supplies in the current season. At the start of the Outlook, prices are low, prompting farmers to begin shifting toward more profitable crops. Although the market is expected to tighten significantly in 2026, international sugar prices are likely to remain under pressure as stock releases in India and Thailand offset shrinking production. Over the rest of the Outlook period, real prices are projected to ease slightly, supported by continued productivity gains boosting export availabilities. However, this downward pressure will be partially offset by assumed stable real international crude oil prices following current increases which, combined with improvements in refining efficiency, are expected to incentivise the use of sugar crops for ethanol production, thereby providing some support to sugar prices. The white sugar premium (the price difference between white and raw sugar) is expected to remain stable over the next few years before rising slightly in real terms over the Outlook period, reflecting the declining share of white sugar in total export availabilities. (Source: OECD FAO Agricultural Outlook 2026 2035)

(Source: OECD FAO Agricultural Outlook 2026 2035)

Global Ethanol Production

Global ethanol production continues to play a pivotal role in shaping the sugar market, with India and Brazil increasingly allocating sugarcane towards ethanol production, thereby tightening global sugar supplies. In Brazil, strong biofuel demand and supportive blending policies continue to encourage mills to divert a larger share of sugarcane to ethanol, while in India, ethanol production is expected to expand at a measured pace, subject to remunerative pricing and government policy support. The growing competition between sugar and ethanol production is expected to remain a key driver of global sugar availability and price movements. Looking ahead, Brazil and India are expected to remain the dominant players in the global ethanol industry. By 2035, Brazil is projected to account for 72% of global sugarcane-based ethanol production, followed by India with 23%, while also remaining among the worlds largest producers of sugarcane and sugar. In contrast, Thailand is expected to continue producing ethanol primarily from molasses and cassava rather than direct sugarcane juice, whereas Argentina is expanding the direct use of sugarcane juice for ethanol production to meet rising domestic biofuel blending mandates. (Source: www.Chinimandi.com , OECD FAO Agricultural Outlook 2026 2035)I

INDIAN SUGAR INDUSTRY OVERVIEW

The sugar industry is one of Indias most significant agro-based industries and plays a crucial role in the countrys rural economy. The sector supports the livelihood of approximately 5.5 crore sugarcane farmers and their families and provides direct employment to nearly 5 lakh workers in sugar mills and allied industries. Besides sugar production, the industry has evolved into an integrated bio-energy sector through the manufacture of ethanol, cogeneration of power, and other value-added by-products such as molasses, bagasse and press mud. India continues to be the worlds second-largest producer of sugar and the largest consumer, making the sector strategically important from both food security and energy security perspectives. The Governments continued emphasis on the Ethanol Blended Petrol (EBP) Programme, timely policy interventions, and export management has significantly improved the financial stability of the industry while ensuring timely payments to sugarcane farmers.

The Indian sugar industry comprises both organized and unorganized sectors. The organized sector consists of sugar factories engaged in the manufacture of sugar and allied products including ethanol, molasses, bagasse, cogenerated power and press mud. The unorganized sector comprises traditional sweetener producers manufacturing jaggery and semi-refined sugar. Approximately 75% of the countrys sugarcane production is processed by sugar mills, while the remaining cane is utilized for the production of jaggery and semi-refined sugar. During the 2025-26 sugar season, the industry outlook remained positive. According to the Indian Sugar & Bio-energy Manufacturers Association (ISMA), Indias gross sugar production is estimated at approximately 349 lakh tonnes, representing an increase of around 18% over the previous seasons production of about 295 lakh tonnes. The improved outlook has been supported by favourable monsoon conditions, better cane availability, higher crop productivity and improved sugar recovery in major sugar-producing states including Uttar Pradesh, Maharashtra and Karnataka. The total sugarcane acreage in the country for the 2025-26 season is estimated at approximately 57.24 lakh hectares, marginally higher than the previous years acreage of 57.11 lakh hectares. Better rainfall, improved irrigation availability and adoption of superior sugarcane varieties are expected to contribute towards higher cane yields and improved sugar recovery. The Government of India has continued to support the sugar sector through progressive policy measures. For the 2025-26 sugar season, the Government enhanced the Fair and Remunerative Price (FRP) of sugarcane to 355 per quintal (at the prescribed basic recovery rate), compared to 340 per quintal in the previous season. The revised FRP seeks to provide better remuneration to sugarcane farmers while maintaining the long-term sustainability of sugar mills. The ethanol blending programme continues to be one of the key growth drivers for the industry. The Governments sustained focus on increasing ethanol blending with petrol has created additional revenue streams for sugar mills, reduced dependence on cyclical sugar prices, strengthened Indias energy security and contributed towards environmental sustainability. The integrated business model encompassing sugar, ethanol and cogeneration has enhanced operational efficiency and improved resilience against fluctuations in sugar production and prices. The outlook for the Indian sugar industry remains encouraging, supported by healthy sugarcane production, favourable government policies, increasing domestic sugar consumption, expansion of ethanol manufacturing capacity and continued focus on renewable energy. However, the industry continues to remain exposed to climatic variations, fluctuations in international sugar prices, government policy changes, sugar recovery trends and availability of sugarcane. Overall, the long-term fundamentals of the Indian sugar and bio-energy industry remain strong. Continued policy support towards ethanol blending, integrated operations, improved agricultural practices and sustainable cane development initiatives are expected to enhance the competitiveness and profitability of the sector in the coming years. https://dfpd.gov.in/en During Sugar Season (SS) 2025–26, sugarcane cultivation remained broadly stable across the country. According to the Indian Sugar & Bio-energy Manufacturers Association (ISMA), the total sugarcane acreage was estimated at approximately 57.3 lakh hectares, marginally higher than the previous season. Favourable monsoon conditions, improved irrigation facilities and adoption of better cane varieties supported higher productivity in major sugar-producing states. However, production estimates were revised during the season to reflect actual recovery levels and weather conditions. Maharashtra remained the largest sugar-producing State during the season, supported by improved cane availability, better reservoir levels and higher sugar recovery. Karnataka also recorded healthy growth in production owing to increased acreage and favourable crop conditions. In Uttar Pradesh, although sugarcane acreage remained marginally lower than the previous year, sustained cane development programmes, varietal replacement and effective disease management helped maintain stable production and recovery levels. The Government of India continued to strengthen the financial sustainability of the sector through policy support for ethanol blending, export management and enhancement of the Fair and Remunerative Price (FRP) for sugarcane. The Ethanol Blended Petrol (EBP) Programme has emerged as a key growth driver by providing diversified revenue streams for sugar mills, reducing dependence on cyclical sugar prices and contributing towards Indias energy security and environmental objectives. Domestic sugar demand remained robust during the year, driven by population growth, urbanisation, increasing disposable incomes, expansion of the food processing industry, beverages, confectionery, dairy products and organised retail. Institutional consumption from hotels, restaurants, catering services and the hospitality sector also contributed to steady demand.

Outlook for Sugar Season 2026–27

The outlook for Sugar Season 2026–27 remains encouraging. According to the United States Department of Agriculture (USDA), Foreign Agricultural Service, Indias sugar production is projected to recover to approximately 33.6 million metric tonnes (raw value), reflecting an increase of around 12% over the revised estimate for the previous season. The improvement is expected to be driven by better sugarcane yields, improved recovery, favourable weather conditions and higher cane availability in key producing States. Domestic sugar consumption is expected to remain strong, supported by sustained economic growth, rising per capita consumption, increasing demand from the food and beverage industry and continued expansion of organised retail. Simultaneously, the Governments continued emphasis on ethanol blending is expected to provide additional support to the industrys long-term growth by enabling sugar mills to optimise their product mix between sugar and ethanol depending upon market conditions. The industry is also expected to benefit from continued investments in modernisation, digital agriculture, improved irrigation practices, mechanised harvesting and adoption of high-yielding sugarcane varieties. These initiatives are likely to improve operational efficiencies, increase sugar recovery and strengthen the long-term competitiveness of the Indian sugar sector. Notwithstanding the positive outlook, the industry continues to remain exposed to certain risks, including variability in monsoon rainfall, changes in government policy relating to sugar exports and ethanol diversion, fluctuations in international sugar prices, sugar recovery trends and the timely availability of quality sugarcane. Nevertheless, with strong domestic fundamentals, supportive policy initiatives and increasing integration with the bio-energy sector, the long-term outlook for the Indian sugar industry remains favourable.

(Source: https://www.fas.usda.gov/data/gain/2026/04/india-sugar-annual) Drivers of Sugar Demand in India

1. Demographic Growth and Urbanisation

India continues to be the worlds most populous nation, with an estimated population exceeding 1.46 billion in 2026. Sustained population growth, coupled with rapid urbanisation and changing lifestyles, continues to support steady growth in sugar consumption across household and industrial segments.

2. Rising Disposable Incomes and Changing Consumption Patterns

Increasing disposable incomes, expansion of the middle-income population and evolving consumer preferences have led to higher consumption of packaged foods, beverages, confectionery, dairy products and bakery items. These sectors are significant users of sugar, thereby providing sustained demand for the industry.

3. Expansion of the Food Processing and Beverage Industry

Indias food processing industry continues to expand, supported by organised retail, e-commerce, increasing consumer spending and product innovation. The growth of the processed food, bakery, confectionery, dairy and beverage industries is expected to remain a key driver of sugar demand over the medium term.

4. Supportive Government Policies

Government initiatives aimed at enhancing agricultural productivity, improving sugarcane yields, promoting sustainable farming practices and ensuring timely payments to farmers continue to strengthen the sugar value chain. The policy focus on ethanol blending has also enabled the industry to diversify revenue streams while maintaining long-term sustainability.

5. Growth in the Beverage and Quick-Service Restaurant (QSR) Segments

The expanding non-alcoholic beverage market, increasing penetration of organised retail, rapid growth of quick-service restaurants (QSRs) and rising out-of-home consumption continue to support sugar demand. Increasing consumption of carbonated soft drinks, fruit-based beverages, dairy drinks and ready-to-drink products is expected to contribute positively to domestic sugar consumption.

6. Industrial and Institutional Demand

Growing demand from institutional buyers, including hotels, restaurants, catering services, pharmaceutical companies and food manufacturers, continues to support stable sugar consumption. Expansion in tourism, hospitality and food service sectors is further strengthening industrial demand.

7. Stable Domestic Consumption Outlook

India remains one of the largest consumers of sugar globally, with domestic consumption expected to remain resilient, supported by favourable demographics, rising incomes, expanding food processing capacity and continued economic growth. These structural factors are expected to underpin long-term demand for sugar despite increasing diversification towards ethanol production.

INDIAN ETHANOL SECTOR OVERVIEW

Indias ethanol sector has emerged as one of the key pillars of the countrys energy transition strategy, driven by the Governments focus on reducing crude oil imports, enhancing energy security, lowering greenhouse gas emissions and improving farmers incomes. The Ethanol Blended Petrol (EBP) Programme has transformed ethanol from a by-product of the sugar industry into a strategic renewable fuel, supported by sustained policy initiatives and investments across the value chain. The Government achieved the milestone of 20% ethanol blending (E20) in petrol during 2025–26, ahead of the original target, marking a significant step towards cleaner transportation fuels. The policy focus is now shifting towards strengthening feedstock availability, expanding storage and distribution infrastructure, improving logistics and exploring higher ethanol blends for compatible vehicles. Recent policy discussions have also considered enabling the use of E85 and E100 fuels for flex-fuel vehicles in the future. The India ethanol market growth trajectory from 2020 through 2034 contrasts historical EBP-led expansion with a forecast curve powered by the E20 mandate, 2G bio-ethanol scale-up, and flex-fuel vehicle commercialization.

Feedstock diversification continues to be a defining feature of the sectors evolution. While sugarcane-based feedstocks, including C-heavy molasses, B-heavy molasses and sugarcane juice, remain important, grain-based ethanol produced from maize, damaged food grains and surplus rice has gained significant traction. In the medium to long term, second-generation (2G) ethanol produced from agricultural residues such as rice straw and bagasse is expected to contribute towards improving feedstock sustainability while addressing crop residue management.

The sector is also witnessing increasing adoption of digital technologies, automation and advanced process control systems to improve plant efficiency, optimise feedstock utilisation, enhance product traceability and strengthen supply chain management. These technological advancements are expected to improve operational efficiency and support long-term competitiveness. Although fuel blending remains the largest demand segment, ethanol consumption is also expanding across pharmaceuticals, personal care, chemicals, beverages and industrial applications. Growing global emphasis on decarbonisation and sustainable manufacturing is expected to create additional opportunities for high-quality ethanol producers catering to domestic and export markets. Going forward, continued investments in distillation capacity, multi-feedstock flexibility, logistics infrastructure and sustainability initiatives are expected to strengthen the industrys long-term growth prospects. Policy support, technological innovation and diversification of feedstock sources are likely to remain the principal drivers of Indias ethanol ecosystem over the coming decade. Independent industry estimates indicate that the Indian ethanol market could grow at a double-digit rate over the next several years, supported by the continued expansion of the Ethanol Blended Petrol Programme, increasing industrial demand and investments in production capacity. Various market research agencies project the market to grow at approximately 11–14% CAGR through the early 2030s, although estimates vary depending on methodology and market coverage. https://dfpd.gov.in/en

GROWTH FACTORS

The Indian ethanol sector continues to benefit from strong policy support and the countrys long-term commitment to energy security, environmental sustainability and rural economic development. Following the successful rollout of 20% ethanol blending (E20) during FY 2025–26, the industrys growth is expected to be driven by capacity expansion, feedstock diversification and continued investments across the ethanol value chain.

Government Policy Support

The Government of Indias sustained focus on the Ethanol Blended Petrol (EBP) Programme, coupled with supportive pricing mechanisms, interest subvention schemes and favourable biofuel policies, continues to encourage investments in new distillation capacity and multi-feedstock ethanol plants. The ethanol programme is expected to remain a key contributor towards reducing crude oil imports, lowering greenhouse gas emissions and enhancing farmers income.

Diversification of Feedstock

Feedstock diversification is emerging as a major growth driver for the industry. While sugarcane-based feedstocks—including C-heavy molasses, B-heavy molasses and sugarcane juice—continue to play a significant role, increasing utilisation of maize, damaged food grains and surplus rice is improving supply resilience. In the long term, commercialisation of second-generation (2G) ethanol produced from agricultural residues such as rice straw and bagasse is expected to strengthen sustainability and reduce dependence on conventional feedstocks.

Infrastructure and Capacity Expansion

Significant investments are being made across the ethanol ecosystem to expand distillation capacity, storage facilities, transportation networks and fuel distribution infrastructure. Continued infrastructure development will be critical to meeting the growing ethanol demand and ensuring efficient supply across the country.

Technological Advancements

The adoption of advanced process automation, digital manufacturing systems, real-time monitoring and data analytics is improving operational efficiency, product quality and resource optimisation. Technological innovations are also expected to enhance feedstock flexibility, reduce production costs and improve the overall competitiveness of ethanol manufacturers.

Growing Industrial Demand

In addition to its use as a transportation fuel, ethanol continues to witness increasing demand from pharmaceutical, chemical, personal care, beverage and industrial sectors. Rising focus on low-carbon products and sustainable manufacturing practices is expected to support long-term growth in domestic consumption as well as export opportunities.

Investment Opportunities and Sustainability

The sector continues to attract investments from domestic and international participants, supported by a stable policy framework and Indias commitment to achieving its climate and energy transition objectives. Continued investment in technology, infrastructure and sustainable feedstock development is expected to strengthen the industrys long-term growth prospects and position ethanol as a key component of Indias clean energy ecosystem. The Indian ethanol market has evolved into a diversified industry, segmented by feedstock, application, and distribution channel. The continued expansion of the Ethanol Blended Petrol (EBP) Programme, coupled with increasing industrial demand, has strengthened the market and encouraged investments across the value chain.

Feedstock-Based Segmentation

The Indian ethanol industry comprises both sugar-based and grain-based ethanol production. Sugar-based ethanol, manufactured from C-heavy molasses, B-heavy molasses and sugarcane juice/syrup, continues to be a major contributor owing to Indias well-established sugar industry and integrated sugar-ethanol business model. Grain-based ethanol has witnessed significant growth in recent years, supported by Government policies permitting the use of maize, damaged food grains and surplus rice. The expansion of grain-based distillation capacity has enhanced feedstock diversification, improved supply resilience and strengthened Indias ability to meet the growing ethanol blending requirements. Going forward, both sugar-based and grain-based ethanol are expected to complement each other in ensuring a stable and sustainable ethanol supply. Second-generation (2G) ethanol, produced from agricultural residues such as rice straw, bagasse and other lignocellulosic biomass, represents an emerging segment. Although currently at an early stage of commercialisation, 2G ethanol is expected to contribute towards long-term feedstock sustainability while supporting the circular economy and reducing agricultural residue burning.

Application-Based Segmentation

Fuel blending continues to account for the largest share of ethanol consumption in India under the Ethanol Blended Petrol (EBP) Programme. In addition, ethanol is widely used in the pharmaceutical, chemical, personal care, alcoholic beverage and industrial sectors. Growing emphasis on sustainable manufacturing, renewable fuels and low-carbon products is expected to support demand across these application segments.

Distribution Channel

The Indian ethanol market primarily operates through direct supply arrangements with Oil Marketing Companies (OMCs) for fuel blending under the EBP Programme, which represents the largest distribution channel. Industrial consumers, including pharmaceutical, chemical and beverage manufacturers, procure ethanol through direct contracts as well as authorised distributors depending on their operational requirements. Distributors and bulk suppliers continue to play an important role in servicing medium and small industrial customers by facilitating storage, transportation and regional distribution. As ethanol demand continues to grow, investments in logistics infrastructure, storage terminals and supply chain integration are expected to improve the efficiency, reliability and nationwide availability of ethanol.

India Ethanol Market Size, Share, Trends & Forecast (2026-2034)

Metric	Value
Market Size (2025)	USD 3.43 Billion
Forecast Market Size (2034)	USD 11.78 Billion
CAGR (2026-2034)	13.95%
Base Year	2025
Historical Period	2020-2025
Forecast Period	2026-2034
Largest Region	North India (31.5% share, 2025)
Leading Type	Bio Ethanol (87.6%, 2025)
Leading Purity Grade	Denatured (81.3%, 2025)

The India ethanol market size was valued at USD 3.43 Billion in 2025 and is projected to reach USD 11.78 Billion by 2034, exhibiting a CAGR of 13.95% during the forecast period 2026-2034. The Ethanol Blending Programme (EBP), the E20 fuel mandate, the National Biofuel Policy, and rising sugar surplus are powering India ethanol market growth. Bio-ethanol leads with 87.6% share in 2025, while denatured grades represent 81.3% of demand. North India dominates regionally with 31.5% share in 2025.

Market Outlook

The Indian ethanol market is expected to witness sustained long-term growth, supported by favourable Government policies, continued expansion of blending programmes, feedstock diversification, capacity additions and increasing industrial demand. The industrys gradual transition towards multi-feedstock production and adoption of advanced technologies is expected to further enhance operational efficiency, supply security and environmental sustainability. Ethanol continues to witness robust demand across both fuel and industrial applications. While the Ethanol Blended Petrol (EBP) Programme remains the largest demand driver, ethanol is also extensively used in pharmaceuticals, chemicals, personal care products, beverages, food processing and other industrial applications. Rising consumer spending, expanding manufacturing activity and increasing preference for sustainable and bio-based products are expected to support long-term growth in industrial ethanol consumption. Growing global emphasis on environmental sustainability and product traceability is also expected to create additional opportunities for Indian ethanol producers in export markets. India has significantly expanded its ethanol production capacity over the past few years through investments in new distilleries, capacity augmentation and multi-feedstock facilities. The successful achievement of 20% ethanol blending (E20) during FY 2025–26 marks a major milestone in the countrys biofuel programme. Going forward, the industrys focus is expected to shift towards strengthening feedstock availability, improving logistics and storage infrastructure, enhancing production efficiency and ensuring a balanced supply of ethanol from both sugar-based and grain-based feedstocks.

Feedstock diversification has emerged as a key strategic priority for the industry. Alongside conventional sugarcane-based feedstocks such as C-heavy molasses, B-heavy molasses and sugarcane juice/syrup, grain-based ethanol produced from maize, damaged food grains and surplus rice continues to play an increasingly important role in meeting blending requirements. The gradual commercialization of second-generation (2G) ethanol produced from agricultural residues is also expected to improve long-term feedstock sustainability while supporting environmental objectives. The Government of India continues to play a pivotal role in the development of the ethanol ecosystem through supportive policy measures, administered ethanol procurement prices, interest subvention schemes and a stable regulatory framework. The coordinated approach adopted by the Government in balancing sugar production, ethanol diversion and domestic sugar availability has contributed to market stability while ensuring timely payments to sugarcane farmers. Continued policy support, infrastructure development and technological advancements are expected to strengthen Indias position as one of the worlds leading ethanol-producing nations. https://mopng.gov.in Government measures to increase Ethanol Blending Government Measures to Promote Ethanol Blending

The Government of India has continued to strengthen the countrys biofuel ecosystem through progressive policy reforms aimed at enhancing energy security, reducing dependence on imported crude oil, lowering greenhouse gas emissions and improving farmers incomes. The National Policy on Biofuels, 2018, as amended in 2022, advanced the target of achieving

20% ethanol blending (E20) in petrol from 2030 to the Ethanol Supply Year (ESY) 2025–26. During FY 2025–26, India successfully achieved this milestone, marking a significant step in the countrys clean energy transition. The Ethanol Blended Petrol (EBP) Programme has witnessed consistent growth over the past few years, supported by policy interventions that expanded feedstock availability, encouraged investments in distillation capacity and introduced administered pricing mechanisms for ethanol supplied to Oil Marketing Companies (OMCs). The programme has evolved into one of the largest biofuel initiatives globally and continues to provide a stable demand environment for ethanol producers. The Government has adopted a diversified feedstock strategy by permitting ethanol production from sugarcane-based feedstocks, including C-heavy molasses, B-heavy molasses and sugarcane juice/syrup, as well as grain-based feedstocks such as maize, damaged food grains and surplus rice. The National Policy on Biofuels also provides for the use of agricultural residues and other biomass for the production of second-generation (2G) ethanol, thereby supporting feedstock sustainability and efficient utilisation of agricultural resources. To facilitate capacity expansion, the Government introduced Ethanol Interest Subvention Schemes for establishing new distilleries and expanding existing facilities. In addition, Oil Marketing Companies have entered into long-term off take arrangements with ethanol producers, providing greater investment certainty and strengthening the ethanol supply chain. Policy measures such as the reduction of Goods and Services Tax (GST) on ethanol for blending, simplification of ethanol procurement procedures, amendments to facilitate interstate movement of ethanol and periodic revisions in administered ethanol procurement prices have further supported the growth of the sector. These initiatives have encouraged investments in integrated sugar and ethanol operations while promoting feedstock diversification and production efficiency. Going forward, the Government is expected to focus on strengthening feedstock availability, expanding storage and distribution infrastructure, promoting advanced biofuels, including second-generation (2G) ethanol, and ensuring a balanced approach towards food security, sugar availability and renewable energy objectives. Continued policy support is expected to sustain the long-term growth of Indias ethanol industry. https://www.pib.gov.in/indexd.aspx?reg=48&lang=2 Ethanol Price by Feedstock for ESY 2022-23, 2023-24 and 2024-25 (INR per Liter)

FEEDSTOCK	ESY 2023/24	ESY 2024/25	ESY 2025/26
Sugarcane Juice/Sugar Syrup/Sugar	65.61	65.61	65.61
B-Heavy Molasses	60.73	60.73	60.73
C-Heavy Molasses	56.28	57.97	57.97
Damaged Food Grains/Maize	64.00	64.00	64.00
Corn/ Maize	71.86	71.86	71.86
Surplus Rice (from Food Corporation of India)	58.50	58.50	60.32

The Government continued procurement during ESY 2025–26 at the prevailing administered prices notified for ESY 2024–25, except where specific revisions were announced. (Source: United States Department of Agriculture, Foreign Agriculture Service)

Indias co-generation sector continues to play an important role in the countrys renewable energy transition by enabling efficient utilisation of biomass resources for the simultaneous generation of electricity and thermal energy. Bagasse-based co-generation, primarily undertaken by integrated sugar mills, contributes to renewable power generation, improves energy efficiency and supports the circular economy by converting agricultural by-products into clean energy. The Government of India has reaffirmed its commitment to increasing the share of non-fossil fuel-based electricity generation as part of its long-term climate and energy security objectives. In this context, biomass-based power and bagasse co-generation continue to receive policy support as reliable and dispatchable renewable energy sources that complement solar and wind power while promoting sustainable utilisation of agricultural residues.

India possesses significant biomass resources, including bagasse, crop residues and other agro-industrial waste, providing substantial potential for renewable power generation. Modern biomass-based co-generation offers multiple economic and environmental benefits, including improved energy efficiency, reduction in greenhouse gas emissions, lower dependence on fossil fuels, enhanced rural employment and additional revenue streams for sugar mills through the export of surplus electricity to state distribution utilities.

The Ministry of New and Renewable Energy (MNRE) continues to promote biomass power and bagasse-based co-generation through the National Bioenergy Programme, which supports the development of biomass-based power projects, waste-to-energy initiatives and advanced bioenergy technologies. The programme aims to encourage efficient utilisation of biomass resources, facilitate clean energy generation and contribute towards Indias renewable energy capacity expansion. Bagasse-based co-generation remains one of the most mature renewable energy technologies in the sugar industry. Continuous investments in high-pressure boilers, energy-efficient turbines and modern process technologies have enabled integrated sugar mills to improve steam efficiency, maximise power generation and enhance operational sustainability. These technological advancements are expected to strengthen the long-term competitiveness of the sector while contributing to Indias clean energy and decarbonisation objectives.

With continued Government support, favourable renewable energy policies and increasing emphasis on sustainable industrial operations, the co-generation sector is expected to remain an integral component of Indias renewable energy ecosystem and provide stable long-term value for integrated sugar and bioenergy companies. https://mnre.gov.in/

FINANCIAL ANALYSIS AND OPERATIONAL SNAPSHOT

FINANCIAL PERFORMANCE (Rs. in Lakhs)

PARTICULARS	2025-26	2024-25
Revenue from Operations	174344.14	174515.51
Other Income	3086.85	3377.08
Total Income	177430.99	177892.59
EBITDA	7156.34	10482.76
EBITDA/ Sales (%)	4.10%	6.12%
Profit before tax	3638.47	4411.12
Tax Expenses	1257.07	972.83
Profit after tax	2381.40	3438.29

OPERATIONAL PERFORMANCE

Sugarcane and Sugar Beet crushed and sugar produced across all units

Particulars	Sugarcane		Sugar Beet
	2025-26	2024-25	2025-26	2024-25
Crushing (lakh quintal)	115.97	158.86	23.59	16.44
Recovery % (Net)	9.55	9.33	7.84	7.49
Production (lakh quintal)	11.08	14.82	1.85	1.23

Cane Crushing was lower as compared to the previous year due to lower availability of cane during the crushing season.

Performance of cogeneration division- Metrics of power sold:

	2025-26		2024-25
Unit	Power sold (Lakh units)	Amount (Rs. /Lakh)	Power sold (Lakh units)	Amount (Rs. /Lakh)
Punjab	166.29	1342.56	228.64	1743.56
Uttar Pradesh	400.37	2034.28	241.56	870.57
Total	641.7	3637.35	470.2	2614.13

The Power sales in the Punjab decreased by 23% due to lower number of operating days as compared to the previous year as the availability of cane was limited during the crushing season.

Power operations are dependent on sugar operations and thus are directly impacted. Due to lower operating days the power co-generation shrinked by 23%, however in U.P. despite lower operating days power generation ballooned on account of better capacity utilization.

Performance of Distillery/ Ethanol

	Production* (Lakh BL)		Sales*(Lakh BL)		Revenue** (Rs. In Lakh)
Area of Operation	2026	2025	2026	2025	2026	2025
Punjab	765.61	599.09	713.17	587.73	63591.49	54150.07
Uttar Pradesh	306.98	303.73	260.52	314.56	26827.25	29810.39
Total	1072.59	902.82	973.69	902.29	90418.74	83960.46

* Does not include products other than spirit/ Ethanol.

** Including Sale of all products with inter segment transfers.

During the Financial Year 2025-26, the distillery segment recorded a significant increase in both production and sales, with total production rising to 1072.59 lakhs BL (Bulk Litre) from 902.82 lakhs BL (Bulk Litre) in previous Financial Year 2024-25. This growth resulted in a substantial increase in total revenue to Rs. 90,418.74 lakhs from Rs. 83,960.46 lakhs in the previous Financial Year, primarily driven by higher volumes in both Punjab and Uttar Pradesh.

SEGMENTED EBITDA CONTRIBUTION

Segment	EBITDA contribution in 2025-26 (%)	EBITDA contribution in 2024-25 (%)
Sugar	(40.43)	77.35
Distillery	121.50	7.81
Power	32.00	14.84
Unallocated	(13.07)	0.00
Total	100.00	100.00

Accounting policies

The financial statements of the Company have been prepared in compliance with the requirements Section 129 of the Companies Act, 2013 read with the Indian Accounting Standards (IND-AS) issued by the Ministry of Corporate Affairs. The accounting policies followed by the Company form an integral part of the annual report.

Disclosure of Accounting Treatment

In the preparation of financial statements, the company has followed the applicable Accounting standards issued by the Institute of Chartered Accountants of India. The Board has also affirmed that the Annual Accounts have been prepared as per applicable Accounting Standards and Policies and that sufficient care has been taken for maintaining adequate accounting records.

Integrated Sugar, Ethanol and Co-generation Operations Enhanced Ethanol Production Capabilities Favourable Government Policy Support Strategically Located Manufacturing Facilities Manufacturing Flexibility through Sugar Beet Processing Efficient Energy Management Diversified Product Portfolio Strong Focus on Sustainability Long-standing Relationships with Farmers

Expansion of the Ethanol Blended Petrol (EBP) Programme Increasing Domestic Sugar Consumption Diversification into Multi-feedstock Ethanol Production Government Policy Support Capacity Expansion in Ethanol and Distillation Improved Sugar Recovery through Better Cane Varieties Renewable Energy and Circular Economy Initiatives Growing Demand for Sustainable and Specialty Sugar Products Export Opportunities

Integrated Sugar, Ethanol and Co-generation Operations Enhanced Ethanol Production Capabilities Favourable Government Policy Support Strategically Located Manufacturing Facilities Manufacturing Flexibility through Sugar Beet Processing Efficient Energy Management Diversified Product Portfolio Strong Focus on Sustainability Long-standing Relationships with Farmers

Expansion of the Ethanol Blended Petrol (EBP) Programme Increasing Domestic Sugar Consumption Diversification into Multi-feedstock Ethanol Production Government Policy Support Capacity Expansion in Ethanol and Distillation Improved Sugar Recovery through Better Cane Varieties Renewable Energy and Circular Economy Initiatives Growing Demand for Sustainable and Specialty Sugar Products Export Opportunities