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India Ethanol Producers Press for Time-Bound E27 Roadmap as Supply Outstrips Demand

Industry groups say a clear plan is needed to absorb surplus capacity, protecting farmer incomes.

Overview

  • ISMA and IFGE called for a National Ethanol Mobility Roadmap to move beyond the newly achieved E20 target and enable 27% blending.
  • Ethanol producers offered 17,760 million litres for ESY 2025–26 against OMCs’ requirement of roughly 10,500 million litres, raising underutilisation risks.
  • Of the offered volumes, about 4,710 million litres come from sugarcane feedstocks and roughly 13,040 million litres from grain-based units.
  • Grain ethanol makers urged a temporary freeze on new investments, warning plants running at about half capacity would become unviable.
  • The industry sought GST cuts on flex-fuel and smart hybrid vehicles and FAME-like consumer incentives to accelerate market uptake.