# Drought Threatens India's Ethanol Target

> India's ethanol blending target drops as drought prioritizes food security.
- Title: Drought Threatens India's Ethanol Target · The Economic Times
- Summary: India's ethanol blending target drops as drought prioritizes food security. India's ethanol blending rate may fall to 15% due to drought impacting corn and…
- Keywords: india, ethanol blending, drought, corn, sugarcane, food security, monsoon, ethanol production, food inflation, rural economy, The Economic Times
- Source: The Economic Times — https://economictimes.indiatimes.com/industry/renewables/drought-threatens-indias-20-ethanol-blending-target-as-food-takes-priority/articleshow/135520093.cms
- Author: Reuters
- Published: 2026-11-04T03:06:00+00:00
- Read time: 1 min
- Topics: india, ethanol blending, drought, corn, sugarcane, food security, monsoon, ethanol production, food inflation, rural economy
## Monsoon Drought Impacts
India faces lowest monsoon rainfall in over a decade, threatening corn and sugarcane crops.
## Ethanol Blending Target at Risk
Ethanol in Indian petrol may fall below 20% target as food security takes priority.
## Economic Impact of Drought
Corn and sugar prices surged 40% to record highs, with rice climbing 20% amid drought.
## Industry Expert Warning
G.K. Sood, KN Agri Resources chairman, states food must take priority over fuel in drought years.

> India is the world's most populous country, so food has to take priority over fuel, more so in a drought year
## Blending Rate Decline Expected
Ethanol blending rate may drop to 15% from 20% due to corn shortages and high food prices.
## Government Response
Government cut corn-based ethanol purchase price to 68.86 rupees per litre to curb distillery margins.
## Food Inflation Concerns
Retail food inflation accelerated to 7.74% in September, driven by drought-related crop shortages.
## Key takeaway

India's ethanol blending rate may fall to 15% due to drought impacting corn and sugarcane crops, shifting focus to food security.