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flag India’s ethanol industry faces surplus due to stalled demand despite high production, raising sustainability concerns.

flag India’s ethanol industry faces a growing surplus as production capacity reaches 1,500 crore liters, but domestic demand has stalled at around 1,200 crore liters, with procurement falling short of policy targets. flag Industry leaders say exports are unviable due to high grain prices and global competitiveness issues, despite permission for second-generation ethanol exports. flag The sector expanded rapidly based on government promises of E20 blending, but without clear future targets and stronger domestic use, sustainability is uncertain. flag Ethanol production primarily uses maize and damaged grains, not staples, and has helped boost farmer incomes by turning maize into an industrial crop.

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