RJD MP urges Centre to review ethanol policy

Buxar: RJD MP from Buxar, Sudhakar Singh, on Friday urged the Centre to urgently review the ethanol allocation policy, protect existing long-term agreements and intervene to prevent the closure of ethanol plants in Bihar, including the Bharat Plus Ethanol Plant at Nawanagar in Buxar.The MP said Bihar’s ethanol sector was developed following assurances from the Central and state govts to promote industrialisation and ethanol-based industries. Acting on these assurances, 16 ethanol plants — eight grain-based and eight sugar mill-based — were established across the state, with nine more proposed. He said investments running into hundreds of crores were made, generating employment for thousands of local youths.However, Singh pointed out that in the 2025-26 annual ethanol tender, oil marketing companies significantly reduced allocations to dedicated ethanol plants and lowered their priority. He said a new condition mandating 40% production from Food Corporation of India (FCI) rice was also introduced, despite not being part of earlier agreements.He said these changes had a direct impact on operations. As a result of the reduced allocation, the Bharat Plus Ethanol Plant, which has a production capacity of 36,500 KL, was allotted only 16,299 KL.

This, he said, forced the plant to suspend operations from Jan 24, 2026. Around 250 workers were placed on temporary leave, while 450 workers lost their jobs.The MP said similar conditions were prevailing across ethanol plants in Bihar, pushing workers towards migration once again. He added that weakening ethanol units undermines policy credibility, noting that sugar industries are no longer viable without ethanol production and that such decisions run contrary to the govt’s stated industrial policy.