# India caps rice for ethanol, putting pressure on poultry and animal-feed industries

> India’s state-owned oil marketing companies capped ethanol made from surplus rice and damaged food grains for the 2026–27 supply year, limiting the two sources to 4.84 billion liters of a 11-billion-liter tender. With sugar-based ethanol largely excluded, the remaining volume is expected to come mainly from corn and other feedstocks, raising concern among poultry, feed and starch industries.

- Date: 2026-11-05 · published 2026-11-07T01:40:49.821Z
- Category: policy · region India · magnitude medium
- Page: https://feedsoft.ai/events/85393-india-caps-rice-for-ethanol-putting-pressure-on-poultry-and-animal-feed
- Commodities: [Corn](https://feedsoft.ai/c/CORN.md)

## Why it matters

Redirecting more ethanol demand toward corn could tighten domestic supplies and lift prices, increasing feed manufacturers’ input costs. Corn is already reported at 29–30 rupees per kilogram, above the 24-rupee minimum support price.

## Read by commodity

- CORN: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| 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 | 2022-01-21 | [Grain-based ethanol manufacturers demand dual pricing for maize, rice feedstock - The HinduBusinessLine](https://feedsoft.ai/events/43134-grain-based-ethanol-manufacturers-demand-dual-pricing-for-maize-rice-feedstock.md) | +1.4% | +6.9% |
| CORN | 2023-02-14 | [Mexico opens door for GM corn in animal feed, industrial use \| Reuters](https://feedsoft.ai/events/37293-mexico-opens-door-for-gm-corn-in-animal-feed-industrial-use-reuters.md) | -0.8% | -5.8% |
| CORN | 2022-01-25 | [With Strong Industry Margins, Iowa Ethanol Industry Looks for E15 While Pushing Back on EVs](https://feedsoft.ai/events/43132-with-strong-industry-margins-iowa-ethanol-industry-looks-for-e15-while-pushing.md) | +2.6% | +7.9% |
| CORN | 2025-02-15 | [Feedstock economics and policy implications for India’s ethanol sector - The HinduBusinessLine](https://feedsoft.ai/events/26056-feedstock-economics-and-policy-implications-for-india-s-ethanol-sector-the.md) | +0.2% | -7.9% |

## Sources

- theagronews.com: https://theagronews.com/article/india-ethanol-tender-limits-rice-maize-prices-feed-makers

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