Expected Surge in the Use of Maize for Ethanol Production

New Delhi. The Central Government has prohibited the use of sugarcane juice, sugar syrup, and B-heavy molasses in the production of ethanol—a move intended to help increase sugar production. The discontinuation of sugarcane-based feedstocks will inevitably lead to a significant decline in ethanol output; to compensate for this, production from grain-based distilleries will need to be ramped up.

The government has not announced any reduction in the target for ethanol blending in petrol, which remains set at 20 percent. Ethanol derived from sugarcane-based sources has historically played a crucial role in meeting this target—a contribution that will no longer be available starting from the 2026-27 marketing season.

The new ethanol marketing season will commence in November 2026 and continue through October 2027. Maize has emerged as the primary feedstock for ethanol production in the country. For the 2026-27 season, the tenders to be issued by Oil Marketing Companies (OMCs) for ethanol procurement

will be restricted exclusively to ethanol produced from maize, government-held rice stocks, and other damaged grains. Maize production is expected to decline due to reduced sowing during the Kharif season and a deficit in rainfall, which is likely to drive up prices.