In recent years, maize has overtaken traditional sugarcane-based feedstocks to become the primary source of raw material for ethanol production process in India.
The role of maize in India’s ethanol blending programme has strengthened considerably during the Ethanol Supply Year (ESY) 2024–25 (November-October), reflecting a clear shift in feedstock dynamics. Maize emerged as the dominant raw material, accounting for nearly half, approximately 48 per cent, of total ethanol production during the November–October cycle, as per latest data shared by the All India Distillers Association (AIDA), a trade body of ethanol, bio-energy and potable alcohol producers. This marks a notable increase from the 42.6 per cent share recorded in the previous supply year.
In recent years, maize has overtaken traditional sugarcane-based feedstocks to become the primary source of raw material for the ethanol production process in the country. “Out of the total ethanol allocated for the current cycle, maize-based production has seen unprecedented growth, supported by favourable government policies and increased procurement prices (₹71.86 per litre for maize-based ethanol),” AIDA said in a statement
Contributions from other grain sources, including damaged food grains and surplus grains, alongside sugarcane juice, B-heavy molasses, and C-heavy molasses, continue to provide a balanced feedstock mix, it said.
Strong momentum
India’s ethanol supply programme continues to demonstrate strong momentum, with cumulative supplies reaching approximately 1,039 crore litres against a contracted volume of 1,163 crore litres, reflecting an overall 89% fulfillment.
Total grain based feed stocks, including maize and rice accounted for 718 crore litres, contributing to nearly 69 per cent of the ethanol supplied, up from 59 per cent in the previous year. Sugarcane based feed stocks accounted for 321 crore litre or 31 per cent of the total volumes during 2024-25, down from 41 per cent in the previous year.
Vijendra Singh, President, AIDA, said “The latest ethanol supply data reflects the growing maturity and resilience of India’s biofuel ecosystem. The increasing contribution of maize and other grain-based feedstocks is strengthening supply stability while reducing dependence on any single source. With maize now contributing nearly 50% of our feedstock, we have successfully decoupled ethanol production from the sugar cycle. This not only ensures a year-round supply of biofuel but also provides a massive boost to maize farmers across the country.”
Further, Singh said, as India progresses beyond E20, the transition is no longer constrained by supply but by the ability to create a sustained and scalable demand. “AIDA has urged the Government for policy beyond E20 and further explore ethanol-diesel and isobutanol blending to utilise the massive surplus capacity we have built,” he added.
Forex savings
The ethanol industry has a cumulative capacity of around 2,000 crore litres with over 380 dedicated distilleries operational and another 33 in the pipeline. India has already achieved a 20 per cent blending target in 2025.
AIDA said the shift to maize has helped stabilise the rural economy, ensuring that farmers receive prices at or above the minimum support price (MSP). Furthermore, the diversification reduces the industry’s vulnerability to monsoon-related fluctuations in sugarcane production. To date, the EBP programme has saved over ₹1,55,000 crore in foreign exchange and significantly reduced CO2 emissions, AIDA said.
Further, AIDA emphasizes that with current production capacities scaling rapidly, the industry is ready to support higher blending mandates. The association is advocating for the promotion of Flex-Fuel Vehicles (FFVs) and the exploration of ethanol-diesel blends to absorb the growing surplus and further reduce India’s crude oil import bill.
Published on February 19, 2026
