Oil companies exclude ethanol from molasses and B-heavy molasses, following central government directive

Following a central government directive, oil companies will exclude ethanol produced from molasses and B-heavy molasses in the 2026-27 ethanol distribution year. The decision aims to ensure domestic sugar availability and control price inflation. The government has permitted the storage of ethanol from alternative sources like maize, damaged rice, excess food corporation of India rice, damaged grains, and C-heavy molasses. For ethanol production, FCI sold 52.22 lakh metric tons of rice in 2025-26, compared to 2.36 lakh tons in 2024-25.