Indian sugar mills shocked by sudden expiration of ethanol excise tax exemption

In India, sugar mills are in a panic following a government move to reverse the 12.5% excise duty exemption on ethanol that had meant a nearly 10% boost to the fixed price paid to mills. The exception was set to expire in November but the extra boost was figured into the expected returns for the 2015/16 crop year which will now put mills back into a weak financial position just as some were starting to eek of it.