RJD MP Sudhakar Singh urges Centre to review ethanol policy
RJD MP Sudhakar Singh urged the Centre to review ethanol allocation policy, protect long-term contracts and prevent Bihar ethanol plants from shutting. Allocation cuts and new FCI rice conditions have halted operations at some units, causing job losses and threatening investor confidence in ethanol-based industries.
Buxar: Rashtriya Janata Dal (RJD) MP from Buxar, Sudhakar Singh, on Friday called on the Central government to reassess the ethanol allocation policy, safeguard existing long-term agreements, and step in to prevent ethanol plants in Bihar from shutting down, including the Bharat Plus Ethanol Plant at Nawanagar in Buxar, The Times of India reported.
Singh said the ethanol industry in Bihar expanded after both the Central and state governments assured support for industrial growth and ethanol-based businesses. Following these commitments, 16 ethanol plants, including eight grain-based units and eight sugar mill-based units, were set up across the state, with nine more in the pipeline. He noted that investments worth hundreds of crores had been made, creating jobs for thousands of local youths.
The MP highlighted that allocations to dedicated ethanol plants were sharply cut in the 2025–26 annual tender issued by oil marketing companies, and their priority was lowered. He also pointed to the introduction of a new requirement that 40% of production must use rice supplied by the Food Corporation of India (FCI), a condition he said was not included in earlier agreements.
According to Singh, these changes have directly affected plant operations. The Bharat Plus Ethanol Plant, which has a production capacity of 36,500 kilolitres, received an allocation of only 16,299 kilolitres, forcing it to halt operations on January 24, 2026. About 250 workers were placed on temporary leave, while another 450 lost their jobs.
He added that many ethanol plants across Bihar are facing similar challenges, raising concerns that workers may once again be compelled to migrate for employment. Singh warned that weakening ethanol units could damage confidence in government policy, stressing that sugar mills are no longer sustainable without ethanol production and that such decisions contradict the government’s stated industrial goals.
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Source : Chinimandi
