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The Economic Times

Economy / The Economic Times

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Drought threatens India's 20% ethanol blending target as food takes priority

India faces a significant challenge in its ethanol production due to the lowest monsoon rainfall experienced in over a decade. This situation has prompted New Delhi to prioritize food security over its ethanol blending targets. Estimates suggest that the ethanol blending ratio may decrease this supply year from 20% to around 15%. Producers are being squeezed by increased corn prices and reduced purchasing prices for ethanol.

4 Nov 2026 8:36 am