In a significant policy shift, the Maharashtra government has approved the use of food grains such as maize and rice for ethanol production under the dual-feed system, aimed at blending with petrol. As per a recent directive from the state home department, ethanol produced through this route will be strictly restricted from being used for liquor manufacturing.
The new policy will enable distilleries to remain operational throughout the year, including periods when sugarcane is not in season, providing a critical advantage to the ethanol industry.
The West Indian Sugar Mills Association (WISMA) has welcomed the move, describing it as a forward-looking decision that puts Maharashtra on par with other ethanol-producing states like Uttar Pradesh, Bihar, Punjab, and Haryana. The policy is expected to give a fresh boost to the state’s sugar and ethanol sectors.
WISMA Chairman B.B. Thombare expressed appreciation to the Chief Minister and Deputy Chief Minister, calling the decision a crucial and timely intervention.
According to WISMA, the change will allow distilleries to shift between molasses and grain-based feedstocks depending on market conditions, improving capacity utilization and profitability—especially during times when sugarcane supply is low.
The association also noted that this flexibility is essential for Maharashtra to contribute meaningfully to the national target of achieving 20% ethanol blending by the Ethanol Supply Year 2025–26. It added that the new policy will help stabilize the sector amid fluctuating agricultural output and shifting market demands.
Industry leaders view the state’s approval as a transformative step that aligns with national ethanol strategies and strengthens the foundation for a more sustainable, adaptable, and profitable sugar industry in Maharashtra.
