New Delhi, Nov. 14 -- Oil marketing companies (OMCs) have more than tripled the quantity of damaged foodgrains allocated for ethanol production in the 2026-27 ethanol supply year (ESY), and raised the allocations for the spirit from surplus rice and maize, after the Centre directed them to cut quotas of ethanol that come from sugar diversion to zero. The ESY runs from November 1, 2026, to October 31, 2027. Under the OMCs' feedstock-wise allocations, damaged foodgrains rise to 3.81 million tonnes from 1.13 million tonnes in the previous supply year, an increase of 237%. Surplus Food Corporation of India (FCI) rice goes up to 7.2 million tonnes from 5.18 million tonnes. The maize allocation rises 8%, to 13.64 million tonnes from 12.6 million tonnes. These allocations are not assured quantities of grain for distilleries. How much actually gets procured will depend on prices and on competition from other industries that use the same feedstocks. The Centre's directive to the OMCs rules out ethanol made from sugarcane juice, sugar syrup and B-heavy molasses for the whole supply year. It followed concerns over domestic sugar availability, rising prices and the possibility of lower cane output after poor rainfall in key producing states, including Maharashtra and Karnataka. C-heavy molasses, the by-product left after the recoverable sugar has been extracted, remains eligible. With the three sugar-based routes excluded, the OMCs have had to lean more heavily on maize, damaged foodgrains and surplus FCI rice to meet their procurement requirement of 11 billion litres. The allocations provide for 5.183 billion litres of ethanol from maize, 3.239 billion litres from surplus rice, 1.599 billion litres from damaged foodgrains and 971 million litres from C-heavy molasses. Together they come to around 11 billion litres. The rice has been allocated until June 30, 2027, and is expected to yield around 3.24 billion litres. The OMCs have capped procurement from this source at 1.08 billion litres in each of the first three quarters of the supply year. Industry estimates suggest the allocations could rise. Around 12 billion litres will be needed to maintain a 20% ethanol blend in petrol, by the industry's reckoning, and an additional allocation is likely towards the end of the supply year. "Since gasoline consumption is rising by close to 7% per annum, the requirement of ethanol for E20 by OMCs in the public sector will also rise...There will be more allocations (for ethanol) after this first allocation. Rice is allocated as per FCI year, which ends on 30th June. The government might allocate FCI rice for June to Oct as well later on," a senior industry official said, requesting anonymity....