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The Economic Times

Economy / The Economic Times

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Ethanol capacity surges but 20% blending cap limits demand

Distillery capacity is growing faster than ethanol demand. Oil companies expect only a small rise in procurement for petrol blending. New plants will add to existing supply. This situation presents challenges for the ethanol sector. The 20% blending target limits how much more ethanol can be absorbed. Discussions on increasing this target have stalled.

19 Feb 2026 12:54 am