Business · Energy & Commodities · 2 hrs ago

India caps rice and damaged grain use for ethanol production

India caps rice and damaged grain use for ethanol production

For the 2026-27 supply year, India has capped ethanol made from surplus rice and damaged foodgrains.

The rules apply to supplies for oil marketing companies, which have tendered for 11 billion litres of ethanol to blend into fuel.

Together, the two grain sources can supply up to 4.84 billion litres, while the rice limit covers the first three quarters of the supply year.

The government has also stopped sugarcane juice, sugar, sugar syrup and B-heavy molasses from being used for ethanol in this period.

With those sources restricted, more demand is likely to shift to maize, which is also used by poultry, dairy and starch businesses.

That could increase competition for maize as supplies are already under pressure.

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What people are saying

GK SoodAgricultural markets expert and independent director of a listed company
DFG is used as food besides feed. This is the first sign of concern over food availability.
via Hindustan Times
FCI rice is subject to two boundaries. Not over 30% of the total ethanol offered by a unit can be such ethanol, and the allocation is limited to 1.08 billion litres a quarter for three quarters.
via Hindustan Times