Government has received representation from Indian Sugar & Bio Energy Manufacturers Association (ISMA) wherein ISMA has inter-alia requested to reserve at least 50% of total ethanol procurement for sugarcane-based feedstock to ensure parity and economically acceptable utilization of existing capacity, Minister of State for Consumer Affairs, Food & Public Distribution Nimuben Jayantibhai Bambhaniya informed the Lok Sabha.
The information was shared in response to an unstarred question raised by MP Selvaganapathi T.M, during the Winter Session of Parliament.
She said, “Out of total allocation of 1050 crore litres for Ethanol Supply Year (ESY) 2025-26, 289 crore litre has been allocated to sugarcane-based feedstock. Ethanol Production capacity of sugarcane based distilleries is 838 crore litres. More than 42,000 crore rupees have been sanctioned as loan by the banks/ Financial Institutions for setting up of new sugarcane/ grain based distilleries/ Expansion of existing capacity of distilleries upto 31.10.2025.”
“Representations have been received from various stakeholders for enhancing Minimum Selling Price, announcing sugar export policy and increase ethanol procurement price. In this regard, Government has allowed export of 15 LMT sugar for current Sugar Season 2025-26 on 14.11.2025,” she further added.
ISMA has recently urged the Government to enhance the ethanol procurement price to reflect rising feedstock and conversion costs.
According to the ISMA, the current allocation of only 289 crore litres of ethanol to the sugar sector for ESY 2025–26, merely 27.5% of total allocations, has created a serious imbalance and left a large part of distillery capacity underutilised.
