Ethanol Supplies Cross 800 Crore Litres In India, Grain-Based Share Hits 76%: AIDA

New Delhi, Aug 12 (KNN) India’s cumulative ethanol supplies crossed the 800-crore-litre mark during Ethanol Supply Year (ESY) 2025-26, with grain-based feedstocks accounting for around 76 per cent of monthly supplies in July, according to data compiled by the All India Distillers’ Association (AIDA).

Grain-Based Ethanol Gains Share

India supplied 93 crore litres of ethanol in July, taking cumulative supplies beyond 800 crore litres. Grain-based feedstocks accounted for 71 crore litres during the month, compared with 75 crore litres out of 103 crore litres supplied in June.

As a result, the share of grain-based ethanol increased to around 76 per cent in July from about 73 per cent in June, despite a decline in overall monthly supplies. Maize and surplus Food Corporation of India (FCI) grains each contributed 30 crore litres, together accounting for nearly 85 per cent of grain-based supplies during the month, ANI reported.

Damaged food grains contributed another 11 crore litres, indicating the increasing use of multiple grain sources in the ethanol supply chain.

Sugarcane-Based Supplies Decline

Sugarcane-based feedstocks contributed 22 crore litres in July, down from 28 crore litres in June. Their share of total monthly supplies fell to around 24 per cent from 27 per cent during the previous month.

Within the sugarcane-based segment, B-Heavy Molasses accounted for 17 crore litres, while sugarcane juice contributed 4 crore litres and C-Heavy Molasses 1 crore litre.

Industry Sees Need for Higher Ethanol Demand

Bharati Balaji, Deputy Director General, AIDA, said crossing the 800-crore-litre milestone reflects the scale achieved by India’s domestic ethanol industry. 

“What is equally significant is the movement in the monthly supply mix. Grain-based ethanol increased its share from around 73 per cent in June to 76 per cent in July, with maize and surplus FCI grains each contributing 30 crore litres,” she added.

Balaji noted, “The supply side has demonstrated its ability to respond through multiple feedstocks and a growing production base. The next step is to create sufficient demand for this capacity.” 

She emphasised that higher ethanol blending, Flex-Fuel Vehicles and wider applications of ethanol could help expand demand.

Focus on Expanding Ethanol Applications

“The industry has created a much stronger production base, and the priority now should be to ensure that this capacity is utilised efficiently. A clear and predictable framework for expanding ethanol applications will be critical to sustaining investments, supporting the agricultural value chain and advancing India's transition towards cleaner domestic fuels,” Balaji said, as quoted by ANI.

AIDA said additional avenues for ethanol utilisation will become increasingly important as domestic production capacity expands and India advances its clean mobility and renewable fuel objectives.

(KNN Bureau)