# After curbs on sugarcane, government restricts use of rice for ethanol

> India's government capped ethanol production from surplus FCI rice at 3.24 billion litres over the first three quarters of the 2026-27 supply year, and set a 1.6 billion litre annual ceiling on ethanol from damaged foodgrains. Together these cover about 44% of an 11 billion-litre ethanol tender, after most sugarcane feedstocks were excluded from procurement. The shift pushes ethanol demand toward maize, estimated at 16 million tonnes next year versus about 13 million tonnes now.

- Date: 2026-11-04 · published 2026-11-04T03:13:42.588Z
- Category: policy · region India · magnitude medium
- Page: https://feedsoft.ai/events/79082-after-curbs-on-sugarcane-government-restricts-use-of-rice-for-ethanol
- Commodities: [Corn](https://feedsoft.ai/c/CORN.md), [Rough Rice](https://feedsoft.ai/c/RICE.md)

## Why it matters

Losing rice and sugarcane feedstocks shifts ethanol demand onto maize, which competes with poultry and dairy feed users and starch makers. Expect firmer Indian corn prices and weaker rice demand from the ethanol channel.

## Read by commodity

- CORN: bullish ▲
- RICE: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| CORN | 2024-12-23 | [Govt may reduce reserve sale price for rice for ethanol production - GreenLeaf](https://feedsoft.ai/events/27019-govt-may-reduce-reserve-sale-price-for-rice-for-ethanol-production-greenleaf.md) | +0.5% | +6.9% |
| CORN | 2025-10-23 | [Corn ethanol set to overtake sugarcane’s long-standing dominance](https://feedsoft.ai/events/22397-corn-ethanol-set-to-overtake-sugarcane-s-long-standing-dominance.md) | +1.8% | +3.4% |
| CORN | 2025-07-28 | [Rate Difference in Grain-Based and Sugarcane-Based Ethanol Production Affecting Sector: Official – Outlook Business](https://feedsoft.ai/events/23740-rate-difference-in-grain-based-and-sugarcane-based-ethanol-production-affecting.md) | +0.5% | +0.7% |
| CORN | 2019-03-28 | [New record for U.S. ethanol production and exports in 2018 and an update on Iowa’s ethanol industry](https://feedsoft.ai/events/60116-new-record-for-u-s-ethanol-production-and-exports-in-2018-and-an-update-on-iowa.md) | -2.6% | -4.6% |
| CORN | 2023-07-28 | [India bans exports of de-oiled rice bran after white rice \| Mint](https://feedsoft.ai/events/35131-india-bans-exports-of-de-oiled-rice-bran-after-white-rice-mint.md) | -13.3% | -14.1% |
| RICE | 2022-08-30 | [Government has no plans as of now to curb rice exports: Official source](https://feedsoft.ai/events/39989-government-has-no-plans-as-of-now-to-curb-rice-exports-official-source.md) | -2.5% | +0.2% |
| RICE | 2024-08-01 | [Supreme Court seeks government's response on non-basmati rice export ban](https://feedsoft.ai/events/28732-supreme-court-seeks-government-s-response-on-non-basmati-rice-export-ban.md) | -0.6% | -0.8% |
| RICE | 2024-12-23 | [Govt may reduce reserve sale price for rice for ethanol production - GreenLeaf](https://feedsoft.ai/events/27019-govt-may-reduce-reserve-sale-price-for-rice-for-ethanol-production-greenleaf.md) | -3.3% | +5.3% |

## Sources

- hindustantimes.com: https://www.hindustantimes.com/india-news/after-curbs-on-sugarcane-government-restricts-use-of-rice-for-ethanol-101793752354697.html

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.