India's ethanol supply leans on grains as maize leads the feedstock race
India's ethanol sector is experiencing a shift, with grain-based sources—led by maize—making up two-thirds of supply. Diversification, policy support, and future blending targets are key to the industry's long-term growth and resilience.
India’s ethanol industry is undergoing a significant transformation as grain-based sources now account for the majority of overall supplies, with maize emerging as the dominant feedstock. This trend signals a shift in the country’s biofuel landscape, reflecting both evolving government policies and the sector’s strategic efforts to diversify raw material inputs.Shifting gears: From sugarcane to grainsAll India Distillers' Association (AIDA) indicate a decisive tilt towards grains. As of June 2026, nearly 67 percent of the nation’s ethanol supply—approximately 480 crore litres—was sourced from grains, compared to 33 percent, or 238 crore litres, derived from sugarcane-based feedstocks. This marks a notable departure from earlier supply patterns and underscores the industry’s proactive approach to creating a more balanced supply chain.Maize at the centre of the biofuel ecosystemFood Corporation of India (FCI), have supplemented the supply with 177 crore litres, while sugarcane juice, B-Heavy molasses, and damaged food grains have also made significant contributions.Progress and performance: The numbers behind India’s ethanol drivepolicy interventions aimed at spurring investment in ethanol infrastructure and expanding the raw material base.Policy and innovation: Shaping the future of biofuelsVijendra Singh, President of AIDA, highlighted the resilience of the sector: "The latest data shows that India’s biofuel programme is now powered by a robust ecosystem of diversified feedstocks. While maize remains the largest contributor, the growing participation of surplus food grains and sugarcane-based sources strengthens both supply stability and the nation’s energy security."Bharati Balaji, Deputy Director General at AIDA, shared that the programme is now evolving from a phase of building capacity to one of building resilience: "Policy interventions have led to a more balanced mix of feedstocks, which not only secures supply but also grants distilleries greater flexibility. Continued policy support will be critical to sustain the sector’s upward momentum."Implications for farmers and industry stakeholdersLooking ahead: Policy, technology, and market expansion