With the oil marketing companies ( OMCs ) allocating only a “smaller” portion of total requirement for ethanol from sugar-based feedstock for the supply year 2025-26, the sugar industry on Wednesday expressed concern that it would lead to surplus stocks of the sweetener, underused distilleries and delayed payments to the farmers in the current season (October-September).

“The government must rebalance ethanol procurement allocation to sugar industry to at least 50% of the total requirement of OMCs while allowing exports of at least two million tonne (MT) of raw sugar in the 2025-26 season while revised upward minimum selling price ( MSP ) of sweetener so that surplus stocks could be liquidated,” Niraj Shirgaokar, vice president, Indian Sugar and Bio-Energy Manufacturers Association (I

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