Elara Capital warns the sugar-ethanol sector is facing a potential crisis due to a lack of policy interventions, despite current stable production and sales. The brokerage notes concerns over cost inflation and strained realizations for both sugar and ethanol. While individual company viability isn't questioned, profitability could be eroded without policy support. Elara Capital remains tactically negative on Balrampur Chini Mills for the next year but positive long-term due to its entry into PLA manufacturing.