Neutral impactCommodity
Rice use for ethanol may rise as maize, sugarcane acreage falls this Kharif season
Economic Times 1 hr ago·10 Aug 2026, 6:48 pm
India is likely to increase the use of rice for ethanol production this Kharif season. This shift occurs because farmers have planted less maize and sugarcane, which are the usual feedstocks for fuel blending. While this change may raise concerns about food supply, the government has maintained a substantial stock of rice to ensure stability.
This move supports India’s goal of achieving a 20% ethanol blending ratio in petrol. However, it also coincides with soaring sugar prices, driven by fears of a lower crop output. For investors, this highlights the complex trade-offs in the agricultural and energy sectors as the government balances fuel targets with food security.
Excerpt from Economic Times
India is set to ramp up rice utilization for ethanol production this year, amid reduced planting of maize and sugarcane, raising concerns about feedstock availability. Fortunately, the government maintains a healthy stock of rice, offering a safety net. With sugar prices soaring to unprecedented levels due to crop…Read the original at Economic Times
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- Category: Commodity.
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