India’s ethanol supply programme received 987 crore litres of ethanol by the end of September 2026, with grain-based sources accounting for more than 71% of total supplies, according to data released by the All India Distillers’ Association (AIDA) on Thursday.
Against a contracted supply allocation of 1,197 crore litres for Ethanol Supply Year (Nov-Oct) 2025-26, oil marketing companies (OMCs) received 82.5% of the committed volume. Grain-based feedstocks contributed 705 crore litres, underlining their growing importance in meeting the country’s ethanol blending requirements.
Maize emerged as the largest individual feedstock, supplying 413 crore litres, equivalent to more than 41% of total ethanol receipts. Surplus rice sourced from the Food Corporation of India (FCI) contributed 222 crore litres, while damaged foodgrains accounted for another 70 crore litres, according to AIDA.
The association said the use of multiple grain-based feedstocks reflects the ethanol industry's expanding processing capacity and its ability to utilise different agricultural raw materials. It also highlighted the importance of balancing the growing demand for biofuels with food security considerations.
Sugar-Based Ethanol Supply Nears Full Allocation
Sugar-based feedstocks also recorded strong performance during the period. Ethanol produced from sugarcane juice and heavy molasses accounted for 282 crore litres against an allocated quantity of 289 crore litres, translating into a supply fulfilment rate of 97.6%.
Deliveries from both B Heavy and C Heavy molasses streams remained strong, demonstrating the capacity of sugar mills to meet contracted ethanol supply commitments, AIDA said.
Bharati Balaji, deputy director general of AIDA, said the latest figures reflected the increasing maturity of India's ethanol ecosystem. She noted that cumulative supplies had crossed 980 crore litres, with grain-based sources led by maize contributing over 71% of total receipts. Balaji also highlighted the high fulfilment rate achieved by sugar-based feedstocks, which supplied nearly 98% of their allocated volumes.
Diversifying Feedstocks to Support Energy Security
Balaji said a diversified feedstock base would be important for strengthening India's long-term energy security. She emphasised the need for policy continuity and wider avenues for ethanol utilisation as production and supply infrastructure expands.
Greater adoption of flex-fuel vehicles (FFVs), along with the development of sustainable aviation fuel (SAF) and compressed biogas (CBG), could create additional opportunities for the bioenergy sector, she said.
According to AIDA, expanding these applications would help sustain investment in the sector and strengthen agricultural value chains by creating additional demand for farm-based raw materials.