Mumbai, July 23, 2025 — In a landmark shift for Maharashtra’s biofuel policy, the state government has issued an order permitting distilleries to use food grains such as maize and rice (in addition to sugarcane and molasses) for ethanol production — under a dual‑feed mechanism — for blending into petrol. The directive comes from the state home department and includes a key restriction: ethanol produced from these grains must not be diverted for liquor production.
- Year‑round distillery operations: Traditionally, ethanol plants in Maharashtra (especially those tied to sugar mills) operated mainly during the sugarcane crushing season (when molasses supply is available). With the new policy, they can continue production beyond that window using maize or broken rice.
- Flexibility in feedstock switching: Distilleries can switch between sugarcane / molasses and grain feedstock depending on availability, improving capacity utilisation and reducing idle periods. B
- Support to farmers & maize market stability: The policy is expected to boost demand for maize, stabilize prices, and help farmers. For instance, maize prices have been quoted around ₹2,800 per quintal in local reports.
- Aligning with national goals: India aims for high ethanol blending in petrol (20 % target for 2025). This move helps states like Maharashtra contribute more reliably.
