Bihar Ethanol Manufacturers Apprise Petroleum Secretary of Their Problems

25-Dec-2025 01:06 PM

New Delhi. A high-level delegation from the ethanol industry in Bihar recently met with the Union Petroleum Secretary to apprise him of their problems.

The delegation expressed deep concern over the low quota of ethanol allocated to distillers in Bihar during the current marketing season (November-October) of 2025-26 and urged the Petroleum Secretary to intervene in the matter.

The delegation stated that Bihar has abundant production of sugarcane, maize, and rice, and entrepreneurs have invested huge capital in the ethanol industry.

This has led to the establishment of several new ethanol plants in the state and the expansion of existing units.

These units are receiving a good quantity of raw materials for ethanol production, which provides them with the opportunity to utilize their production capacity more effectively.

However, the limited quota of ethanol allocation will not incentivize distillers to increase production, and a large portion of their capacity will remain underutilized.

The distillers in Bihar want to contribute to the National Ethanol Blended Petrol (EBP) program in the long term, but for this, it is essential that they receive incentives to maintain a high level of production.

The current level of ethanol allocation is not conducive to this, and a decision should be taken to increase it.

Bihar has emerged as a major ethanol production hub and expects better cooperation and support from the government.

The industry is confident that the Ministry of Petroleum will seriously consider its demands and issue necessary instructions to the petroleum companies to increase the ethanol supply quota.