NEW The Hindu
Sun 18 Oct 2026 03:30:04 PM
India bars sugar-based ethanol in 2026-27 tender, cuts maize incentive
SUMMARY
India has banned sugar-based ethanol production for the 2026-27 supply year to protect sugar availability amid tight stocks. The government also reduced the price incentive for maize-based ethanol, narrowing its premium over sugarcane-based variants. This aims to balance food security with its ethanol blending program targeting 20% blending with petrol. The move impacts sugar mills and ethanol producers, pushing them toward grain-based feedstocks while ensuring sufficient sugar supply for domestic consumption.
Relevant For:
Prelims + Mains
GS - III
Economy
Focus Area
Ethanol Blending Programme
Biofuel Policy
Agricultural Diversification
Sugar Industry
Energy Security
Related