New Delhi, Sept. 3 -- The Centre plans to hold an interministerial meeting to devise a forward-looking strategy to diversify ethanol feedstocks amid declining sugarcane and maize acreage, three people aware of the matter said.

The strategy could involve greater reliance on grains to sustain E20 fuel blending, given the lower availability of sugarcane and maize, particularly in the 2026 kharif season, and a sharp rise in sugar prices ahead of the festive season.

Average retail sugar prices stood at Rs.63.28 per kilogram on 31 August, up 37.5% year-on-year. The government has taken several measures to curb the rise, including allowing imports of 1 mt of raw sugar, halving the stockholding limit for sugar dealers to 2,000 quintals, and res...