India's Ethanol Supply Reaches 895 Crore Litres in August, Grain-Based Output Nears 70 percent

Grain-based feedstocks have become the biggest contributor to India's ethanol supply, accounting for nearly 70 per cent of the total ethanol supplied during the Ethanol Supply Year (ESY) 2025-26 up to August 2026, according to data released by the All India Distillers’ Association (AIDA). As per the latest figures, India's cumulative ethanol supplies stood at 895 crore litres by the end of August, which is around 85 per cent of the 1,048 crore litres contracted for the period. Grain-based feedstocks accounted for 624 crore litres of the total supply, while sugar-based sources contributed the remaining 271 crore litres.

Maize emerged as the largest grain-based source, contributing 345 crore litres of ethanol. Surplus rice from the Food Corporation of India (FCI) accounted for another 214 crore litres, while damaged food grains contributed 64 crore litres during the period. Sugar-based feedstocks continued to make a significant contribution to the country's ethanol programme, supplying 271 crore litres by August-end. Sugarcane juice was the largest source within this category, accounting for 149 crore litres. B Heavy Molasses contributed 107 crore litres, while C Heavy Molasses added another 15 crore litres.

The latest figures indicate that India's ethanol supply chain is becoming increasingly diversified, with producers drawing on a wider range of agricultural resources. The growing contribution from grain-based sources, particularly maize and surplus FCI rice, is reducing the sector's dependence on sugar-based feedstocks and providing greater flexibility in sourcing raw materials.

AIDA has pointed out that expanding production capacity will also require the development of reliable and predictable avenues for ethanol consumption. As supplies continue to increase, ensuring sufficient demand could become an important challenge for the industry. The association said ethanol utilisation is expected to expand beyond the existing blending programme as India explores wider applications in areas such as Flex-Fuel Vehicles (FFVs), Compressed Biogas (CBG), Sustainable Aviation Fuel (SAF) and other emerging sectors.

Bharati Balaji, Deputy Director General of the All India Distillers’ Association, said the August figures reflect the significant transformation taking place in India's ethanol supply ecosystem. She noted that nearly 70 per cent of the 895 crore litres supplied so far has come from grain-based feedstocks, with maize contributing 345 crore litres and surplus FCI rice adding another 214 crore litres.

Balaji also pointed out that sugar-based feedstocks remain an important part of the overall supply mix. According to her, the availability of multiple domestic feedstock options is a key strength of India's ethanol programme because it allows the industry to utilise different agricultural resources while reducing dependence on a single source.

The latest data therefore highlights both the rapid expansion and changing composition of India's ethanol sector. With grain-based production taking a larger share and new avenues for ethanol consumption being explored, the industry's next phase of growth is likely to depend on balancing rising production with sustained demand.

Disclaimer: This image is taken from ANI.