The Government of India has lifted all quantitative restrictions on ethanol production from sugarcane derived feedstocks namely sugarcane juice, sugar syrup, B-heavy molasses (BHM), and C-heavy molasses (CHM) for the Ethanol Supply Year (ESY) 2025-26, which runs from November 1, 2025, through October 31, 2026 (Reuters, The Times of India, www.ndtv.com, ChiniMandi, Energetica India).
This move is aimed at boosting ethanol production to meet the 20% ethanol blending target (E20) under the Ethanol Blended Petrol (EBP) Programme. At the same time, the Department of Food & Public Distribution (DFPD), in coordination with the Ministry of Petroleum & Natural Gas (MoPNG), will periodically review sugar diversion to ensure that domestic sugar availability remains unaffected (Reuters, www.ndtv.com, Energetica India, The Times of India).
Official Notification
The official order issued by the DFPD (Ministry of Consumer Affairs, Food & Public Distribution) has been made public in the form of a notification titled “Production of Ethanol from sugar/molasses based distilleries reg”, numbered No. 3(2)/2023-SP, dated 1st September 2025. It states:
“Sugar mills and distilleries are allowed to produce ethanol from sugarcane juice/sugar syrup, B-Heavy Molasses as well as C-Heavy Molasses during ESY 2025-26 without any restriction.”
The DFPD, in coordination with the Ministry of Petroleum & Natural Gas, will periodically review the diversion of sugar to ethanol production vis-à-vis sugar production in the country to ensure the availability of sugar for domestic consumption throughout the year.
Suresh Kumhar, Deputy Secretary, Department of Food & Public Distribution
(Food and Public Distribution)
This is the pivotal official document outlining the policy.
Media Coverage Highlights
- NDTV shared a report summarizing key points: sugar mills and distilleries may produce ethanol from the specified feedstocks without restriction, and the blending policy driven by the National Biofuels Policy aims for 20% blending by ESY 2025-26 (www.ndtv.com).
- Economic Times (via Reuters) highlighted that the government has allowed such unrestricted production starting in ESY 2025-26, and will monitor sugar diversion to maintain domestic supply (Reuters, The Economic Times).
- ChiniMandi offered an industry‐focused explanation of the DFPD circular, echoing the details from the official notification (ChiniMandi).
Official Link
- The official notification is available through the government’s DFPD portal as a PDF:
“Production of Ethanol from sugar/molasses based distilleries-reg”, No. 3(2)/2023-SP, dated 1 September 2025 (Food and Public Distribution).
Original Restatement of the Government Order
Here’s a unique and paraphrased summary of the official order’s content:
Government Order (Paraphrased Susres Kumarh, Deputy Secretary)
The Government of India, through the Department of Food & Public Distribution (DFPD), has issued a formal directive approving the unrestricted production of ethanol by sugar mills and distilleries during the 2025-26 Ethanol Supply Year (ESY). Under this directive, facilities are permitted to utilize sugarcane juice, sugar syrup, B-heavy molasses, and C-heavy molasses to produce ethanol, with no volumetric limitations imposed. This measure is designed to accelerate the nation’s progress toward achieving 20% ethanol blending in petrol by ESY 2025-26.
To safeguard domestic sugar availability, the DFPD working in concert with the Ministry of Petroleum & Natural Gas will conduct regular assessments of sugar redirected towards ethanol production in comparison with total sugar output. This ensures that the sugar supply chain remains stable and sufficient for household consumption throughout the year.
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