ARTICLE 2 #Ethanol Production

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.

India’s aggressive drive to expand ethanol production is triggering significant shifts in what farmers plant — and raising fresh concerns about food, oilseed, and resource security.

Facing persistently low sugar prices, many sugarcane mills are increasingly turning to ethanol production as a strategic alternative to stabilize revenues and manage stock surpluses.