Banks, FIs sanction over Rs 42,000 cr in loans for new and expansion of sugarcane/grain-based distilleries till Oct 2025
Banks and financial institutions have sanctioned over Rs 42,000 crore for new and expanded distillery capacity as of 31 October 2025. ISMA has sought reserving half of ethanol procurement for sugarcane-based feedstock. The government allocated 289 crore litres and allowed export of 15 lakh tonnes of sugar.
More than Rs. 42,000 crore has been sanctioned as loans by banks and financial institutions (FIs) for the setting up of new sugarcane- or grain-based distilleries, as well as for the expansion of existing distillery capacity, up to 31st October, 2025, Minister of State for Consumer Affairs, Food & Public Distribution Nimuben Jayantibhai Bambhaniya informed the Lok Sabha.
She said, “Government has received representation from Indian Sugar & Bio Energy Manufacturers Association (ISMA), wherein ISMA has inter-alia requested to reserve at least 50% of total ethanol procurement for sugarcane-based feedstock to ensure parity and economically acceptable utilization of existing capacity. Out of total allocation of 1050 crore litres for Ethanol Supply Year (ESY) 2025-26, 289 crore litre has been allocated to sugarcane-based feedstock.”
The minister stated that ethanol production capacity of sugarcane based distilleries is 838 crore litres.
“Representations have been received from various stakeholders for enhancing Minimum Selling Price, announcing sugar export policy and increase ethanol procurement price. In this regard, Government has allowed export of 15 LMT sugar for current Sugar Season 2025-26 on 14th November, 2025,” she added.
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Source : Chinimandi
