Archive · 26 Sep 2025
Grain Ethanol Makers Seek Investment Cap Amid Expansion
Ethanol makers who use grains like rice and maize to make fuel are asking the government to slow down approving new factories.
They worry there might be too many factories if the government isn't careful.
They want a clear plan for how much ethanol will be used in the future before more factories are built.
The government currently buys a lot of ethanol from these factories.
They are concerned because the costs of ingredients like rice and maize are rising.
Grain-based ethanol makers want a cap on new investments.
They're concerned about overcapacity in the ethanol sector.
Current ethanol blending in petrol is around 20%.
Manufacturers want higher prices from oil marketing companies due to rising feedstock costs.
The government advanced the 20% ethanol blending target from 2030 to ESY 2025-26
- Who
- Grain-based ethanol manufacturers
- What
- Seeking a cap on new investments in the sector
- When
- Ongoing initiative
- Where
- India
- Why
- Prevent overcapacity and ensure profitability
- Request
- Cap on new grain-based ethanol facility investments
- Producers
- Grain-based ethanol manufacturers
- Reason
- Potential overcapacity without clear roadmap
- Current Capacity
- 17 billion litres of ethanol per year
- Current Production
- Approximately 11 billion litres sold to oil marketing companies annually
- Feedstock
- Rice and maize
- Ethanol Blending
- Around 20% in petrol currently
