
India's central government set 2026-27 conditions for ethanol production, capping ethanol from surplus FCI rice at 324 crore litres over nine months and damaged grains at 160 crore litres annually. Most cane-based feedstock use is also banned, so the cap leaves ethanol makers more reliant on maize.
Limiting rice and damaged-grain feedstock pushes ethanol producers toward maize, tightening corn supply for poultry, dairy and starch users and supporting corn prices. Lower rice ethanol use reduces demand for surplus rice.
After 328 past bullish policy events, Corn moved a median +0.0% over 5 sessions (50% higher; middle half -1.3% to +1.3%), and -0.2% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.