# Ethanol Production: After sugar, government tightens rice use; maize demand may rise

> India has capped the quantity of surplus rice procured from the Food Corporation of India that distilleries can use for ethanol, and set a 30% cap per distillery. The restrictions cover the 2026-27 Ethanol Supply Year and follow earlier curbs on sugar-based feedstock. Non-sugar feedstocks such as maize and C-heavy molasses remain permitted.

- Date: 2026-11-04 · published 2026-11-04T09:06:46.935Z
- Category: policy · region India · magnitude medium
- Page: https://feedsoft.ai/events/79451-ethanol-production-after-sugar-government-tightens-rice-use-maize-demand-may
- Commodities: [Rough Rice](https://feedsoft.ai/c/RICE.md), [Corn](https://feedsoft.ai/c/CORN.md)

## Why it matters

Limiting FCI rice use for ethanol keeps more rice available for food, which is bearish for domestic rice prices. Distilleries are likely to shift toward maize, which raises corn demand and supports corn prices.

## Read by commodity

- CORN: bullish ▲
- RICE: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| 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% |
| RICE | 2020-03-10 | [Government sets to provide more funds to support farmers’ productivity and income - THEPHILBIZNEWS](https://feedsoft.ai/events/54210-government-sets-to-provide-more-funds-to-support-farmers-productivity-and.md) | +6.5% | +14.9% |
| 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 | 2024-07-10 | [Government to resume wheat sale from FCI stock; may take a call on lifting ban in rice exports - Times of India](https://feedsoft.ai/events/29224-government-to-resume-wheat-sale-from-fci-stock-may-take-a-call-on-lifting-ban.md) | -15.8% | -11.1% |
| 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 | 2017-06-19 | [US corn ethanol producers to tap into overseas demand - Governors' Biofuels Coalition](https://feedsoft.ai/events/70503-us-corn-ethanol-producers-to-tap-into-overseas-demand-governors-biofuels.md) | -5.4% | -1.7% |
| 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% |

## Sources

- zeebiz.com: https://www.zeebiz.com/india/news-ethanol-production-after-sugar-government-tightens-rice-use-maize-demand-may-rise-405052

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