Ethanol boom faces reality check as surplus capacity clouds green fuel roadmap

Feb 22, 2026 - 18:30
Ethanol boom faces reality check as surplus capacity clouds green fuel roadmap

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India's ethanol production capacity now significantly outstrips demand, leading to over 50% excess capacity. This surplus challenges the green fuel program's viability, impacting farmers and investors, as distilleries operate at low utilization rates. Future growth hinges on exploring diesel blending and flex-fuel vehicle adoption, though policy clarity remains elusive.

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