New Delhi, Oct. 29 -- The Indian Sugar and Bio-Energy Manufacturers Association (ISMA) has raised concerns over the drastic reduction in ethanol allocation from sugar-based feedstocks, warning it could lead to surplus sugar stocks, underutilized distilleries, and delayed payments to farmers in the 2025-26 sugar season.

ISMA said only 289 crore litres of ethanol have been allocated from sugar-based feedstocks under the Ethanol Supply Year 2025-26, just 28 per cent of the total requirement, compared to 72 per cent (760 crore litres) from grain-based sources. The association noted that this imbalance could reduce sugar diversion to ethanol and create excess sugar stocks, aggravating liquidity issues for mills.

ISMA statement says "Under th...