Key Highlights
- Milestone: Ethanol receipts reached 987 crore litres by September-end in ESY 2025-26.
- Grain leads: Grain-based feedstocks supplied 705 crore litres, or 71.4% of the total.
- Maize on top: Maize alone contributed 413 crore litres, over 41%.
- Sugar delivers: Sugar-based sources met 97.6% of their allocation.
- Overall: 82.5% of the 1,197 crore litre allocation has been supplied.
India’s ethanol blending programme crossed 987 crore litres of supplies by the end of September 2026, according to data from the All India Distillers’ Association (AIDA). Oil marketing companies have received 82.5% of the total contracted allocation of 1,197 crore litres for the current ethanol supply year.
Where the Ethanol Comes From
| Feedstock | Supply (crore litres) | Share of total |
|---|---|---|
| Maize | 413 | ~42% |
| Surplus FCI rice | 222 | ~22% |
| Damaged foodgrains | 70 | ~7% |
| Total grain-based | 705 | 71.4% |
| Sugar-based (juice, molasses) | 282 | ~29% |
| Total | 987 |
Shares calculated from AIDA figures.
Grain Leads, Sugar Delivers
The data shows two different stories. Sugar-based producers supplied 282 crore litres against an allocation of 289 crore litres, a 97.6% fulfilment rate. Grain-based producers delivered far more in volume, but against a larger allocation of about 908 crore litres, their fulfilment works out to roughly 78%.
“Crossing the 980-crore litre mark is a major milestone, with grain-based sources — led by maize at 413 crore litres — contributing over 71 per cent of total supplies,” said AIDA deputy director general Bharati Balaji.
Why It Matters: Fuel From Farms, at a Costly Time
With crude oil trading above $100 a barrel, every litre of ethanol blended into petrol means a litre less of imported oil. That helps India’s import bill, the rupee and energy security, at a time when all three are under pressure.
The shift to maize is also reshaping farm economics. Growing demand from distilleries has given maize farmers a strong new buyer. At the same time, the trend has sparked debate, as poultry and cattle-feed industries that rely on maize worry about higher prices. Balancing fuel needs with food and feed supply will be a key policy challenge.
What the Industry Wants Next
AIDA called for policy continuity and new uses for ethanol to keep investment flowing, including flex-fuel vehicles, sustainable aviation fuel and compressed biogas. “Building a robust, multi-feedstock supply network is vital for long-term energy security,” Balaji said.
India’s ethanol supply has crossed a major milestone, powered increasingly by maize and grain. Sustaining it will depend on keeping the balance between fuel, food and farmers’ incomes.
With inputs from IANS.