Скачать или смотреть ISMA seeks higher ethanol quota, warns delayed cane farmer payments amid policy gap

The Indian Sugar & Bio-Energy Manufacturers Association (ISMA) has urged the government to increase the ethanol quota for sugar mills for the 2025–26 season, warning that a smaller allocation could lead to delayed payments to sugarcane farmers.

ISMA said sugar-based distilleries received only 28% of total ethanol contracts (289 crore litres) compared to 72% for grain-based ethanol, despite the sugar sector investing over ₹40,000 crore in production capacity.

Director General Deepak Ballani blamed a policy and planning gap by oil marketing companies (OMCs) for the skewed allocation, adding that the imbalance undermines the government’s biofuel blending targets and financial stability of mills.

ISMA has also demanded a 50% ethanol allocation, a hike in the minimum selling price (MSP) for sugar, and permission to export 2 million tonnes to prevent stockpile buildup.
Vice President Niraj Shirgaokar cautioned that low ethanol quotas and rising input costs could make it difficult for mills to pay farmers on time.

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