ARTICLE 3 #EthanolBlending

India’s ethanol production landscape is undergoing a quiet transformation. What used to be dominated by sugarcane and its by‑products is now seeing grains like maize, broken or damaged rice, and surplus foodgrains emerge as the chief raw materials.

The Indian sugar sector is urging the government to ramp up ethanol blending with petrol from the current 20% (E20) to 27% (E27), arguing that the country already has surplus ethanol production capacity from sugarcane.

Regulatory / export risk: Government may restrict exports or change diversion rules if domestic sugar supply becomes tight. Key metrics to monitor: ethanol blending rate achievements, changes in government notifications on sugar/ethanol, sugar cane harvest/production numbers, molasses prices, and margins of mills.