India Shifts Focus from Maize to Rice and Sugarcane Amid Blending Targets

The Indian government is shifting its focus towards rice and sugarcane to meet its ambitious ethanol blending target of 20% for 2026-27, due to a significant decline in national maize acreage. The maize production has dropped by 9.7% to 77.79 lakh hectares as of July 24.

This reduction in maize supply is expected to impact the operational strategy of major grain-based distillery companies and domestic grain prices. To offset the maize deficit, the government has adjusted the policy for broken rice, reducing its allocation in official stocks from 25% to 10%. This regulatory change aims to increase the availability of broken rice for industrial purposes, including ethanol production.

Companies operating in the grain-based ethanol space will now face fluctuating raw material costs depending on regional crop outcomes. The reliance on a diversified feedstock base is becoming a critical factor for the industry as it navigates supply constraints and government adjustments to grain allocation policies.