India’s Ethanol Basket Gets Broader as Grain-Based Feedstocks Contribute 624 Crore Litres by August-End: AIDA

Maize accounts for 345 crore litres; overall ethanol supplies reach 895 crore litres, or 85% of contracted volume

New Delhi, September 11, 2026: India’s ethanol supply ecosystem is becoming increasingly diversified, with grain-based feedstocks contributing 624 crore litres of ethanol by the end of August 2026, accounting for nearly 70% of cumulative supplies under Ethanol Supply Year (ESY) 2025-26, according to the latest data compiled by the All India Distillers’ Association (AIDA).

Overall ethanol supplies stood at 895 crore litres by August-end, against 1,048 crore litres contracted, meaning around 85% of the contracted quantity has already been supplied.

The latest data highlights the expanding role of grain-based production pathways in India’s ethanol programme. Maize emerged as the largest individual feedstock contributor at 345 crore litres, followed by surplus FCI rice at 214 crore litres and damaged food grains at 64 crore litres.

The figures point to a broader and more flexible feedstock base supporting India’s ethanol ecosystem, with grain-based and sugar-based pathways collectively contributing to the growing domestic supply of renewable fuel.

Grain-based feedstocks account for nearly seven out of every ten litres

Of the 895 crore litres supplied cumulatively by August-end, 624 crore litres came from grain-based feedstocks, while sugar-based feedstocks contributed 271 crore litres.

Within the grain-based segment, maize accounted for 345 crore litres, making it the largest contributor among all individual feedstocks. Surplus FCI rice contributed 214 crore litres, while damaged food grains contributed 64 crore litres.

The contribution from multiple grain streams reflects the increasing ability of the domestic ethanol industry to utilise diverse agricultural resources for fuel production.

The composition is also significant from the perspective of supply resilience. A broader feedstock basket allows ethanol production to draw upon different agricultural sources depending on availability, strengthening the flexibility of the supply chain as the programme expands.

Sugarcane contribution

While grain-based feedstocks have emerged as the larger component of cumulative supplies, sugar-based feedstocks continue to provide a substantial supply base.

Sugar-based feedstocks contributed 271 crore litres by August-end. Within this, Sugarcane Juice contributed 149 crore litres, followed by B Heavy Molasses at 107 crore litres and C Heavy Molasses at 15 crore litres.

The continued contribution from both grain and sugar-based pathways underlines the importance of retaining a multi-feedstock approach as India moves towards the next phase of its ethanol programme.

895 crore litres supplied against 1,048 crore litres contracted

The industry has supplied 895 crore litres against 1,048 crore litres contracted for ESY 2025-26, representing approximately 85% of the contracted volume by August-end.

The scale of supply reflects the significant production and procurement ecosystem that has developed around India’s Ethanol Blending Programme over the past decade.

As domestic ethanol capacity and supply continue to expand, the next challenge will increasingly be to ensure that production growth is matched by adequate and predictable avenues for utilisation.

According to AIDA, this will become particularly important as India looks beyond the current blending framework towards Flex-Fuel Vehicles (FFVs), CBG, SAF and wider applications of ethanol.

Ms. Bharati Balaji, Deputy Director General, All India Distillers’ Association (AIDA), said:

“The August-end numbers demonstrate how significantly India’s ethanol supply ecosystem has evolved. Nearly 70% of the 895 crore litres supplied so far has come from grain-based feedstocks, with maize contributing 345 crore litres and surplus FCI rice contributing another 214 crore litres. At the same time, sugar-based feedstocks continue to provide a substantial share of supplies. This diversity is an important strength of India’s ethanol programme, as it enables the industry to draw upon multiple domestic agricultural resources and reduces dependence on any single feedstock pathway.”

She added, “India has now built a sizable production and supply ecosystem, and the focus must increasingly shift towards ensuring its efficient utilisation. As we move into the next phase of the clean mobility transition, Flex-Fuel Vehicles, CBG, SAF and wider applications can create additional demand avenues. A predictable policy framework that supports demand creation alongside production will be essential to sustaining investment, strengthening farmer-linked value chains and advancing India’s energy-security objectives.”

August 2026: Key Numbers

· Cumulative ethanol supplies by August-end: 895 crore litres

· Total contracted quantity: 1,048 crore litres

· Contracted quantity supplied: ~85%

· Grain-based ethanol supplies: 624 crore litres

· Grain-based share: ~70%

· Sugar-based ethanol supplies: 271 crore litres

· Sugar-based share: ~30%

· Maize contribution: 345 crore litres

· Surplus FCI rice contribution: 214 crore litres

· Damaged food grains contribution: 64 crore litres

· Sugarcane Juice contribution: 149 crore litres

· B Heavy Molasses contribution: 107 crore litres

· C Heavy Molasses contribution: 15 crore litres

The August-end data reflects the growing scale and diversification of India’s domestic ethanol ecosystem. The substantial contribution from maize, surplus FCI rice and other grain-based feedstocks, alongside sugar-based sources, demonstrates the breadth of the production base supporting the country’s renewable fuel programme.

With the supply ecosystem now operating at significant scale, the next phase will require continued alignment between feedstock availability, production capacity and end-use demand. Expanding avenues such as Flex-Fuel Vehicles, CBG, SAF and other applications or technologies can play an important role in creating additional demand and ensuring efficient utilisation of the capacity developed across the sector.