Negative impactSector
Explained: Why could a weak monsoon derail India's ambitious ethanol blending programme?
Mint 1 hr ago·4 Nov 2026, 6:01 pm
India's ambitious goal to blend 20% ethanol in petrol is facing a significant hurdle due to a weak monsoon season. This weather pattern has impacted the supply of sugarcane, a key raw material for ethanol production. Consequently, the government is prioritizing food security by diverting more grains to the open market, which reduces the availability of surplus crops for fuel manufacturing.
This shift in supply dynamics could force the country to fall short of its blending targets. A lower blending rate would mean more petrol is used, increasing the nation's reliance on imported crude oil. For investors, this scenario highlights the volatility of the biofuel sector and the critical link between agricultural output and energy security policies.
Excerpt from Mint
India’s weak monsoon and rising food prices are putting food security ahead of ethanol production, potentially pushing the country’s fuel-blending rate below its 20% target and increasing reliance on imported crude. India's ambition to replace as much as imported fuel as possible with biofuel made in the country is…Read the original at Mint
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