US Ethanol Exports Hit Record Highs, India Among Key Markets

U.S. ethanol exports have continued to expand, with exports through June 2026 running 12 percent higher in volume and 21 percent higher in value than the record pace of 2025, according to a September 2026 USDA report. The US exports reached 1.21 billion gallons valued at $2.76 billion in the first half of 2026.

The report attributes the strong performance to growing global ethanol demand, changing blending mandates and reduced export competition from Brazil. India is among the major markets contributing to the rise in global ethanol demand, although U.S. ethanol shipments to the country are largely for industrial and chemical uses.

U.S. ethanol exports reached a second consecutive annual record in 2025, rising to 8.4 billion liters, valued at $4.7 billion, from 7.4 billion liters and $4.3 billion in 2024. India was among the top ethanol-importing markets identified by the USDA, alongside Canada, the European Union, the UK, Colombia and the Philippines.

India’s Ethanol Consumption More Than Triples

The USDA report said U.S. industrial ethanol exports to India reached a record 718 million liters in 2024, before declining slightly to 711 million liters in 2025. The report links the strong demand in India to rapid growth in fuel ethanol consumption, higher blending rates, rising gasoline consumption and increased domestic ethanol production.

India’s fuel ethanol consumption more than tripled between 2021 and 2025, while the average ethanol blending rate increased from around 8 percent to 20 percent. The expansion of domestic production, including diversification of feedstocks, helped India increase supplies to meet its E20 target by November 2025.

However, imported ethanol is not permitted for fuel use in India. According to the USDA, as domestic ethanol production increasingly shifted from non-fuel applications to fuel blending, U.S. ethanol exports to India helped replace supplies that were diverted from industrial and chemical applications toward the fuel market.

Brazil’s Reduced Exports Boost US Shipments

Reduced competition from Brazil has also played an important role in the growth of U.S. exports. The United States accounted for 64 percent of global ethanol exports in 2025, compared with 48 percent during 2020-23, while Brazil’s share fell to 12 percent from 23 percent.

Strong domestic ethanol consumption in Brazil absorbed a greater share of its production. Brazil increased its gasoline ethanol blending mandate from E27 to E30 in August 2025, further supporting domestic demand.

However, the USDA identifies Brazil as a major wildcard for 2026. Rapid expansion of corn-based ethanol production, including an additional 3 billion liters of capacity forecast by the end of 2026, could increase Brazilian exports and intensify competition.

New Mandates Open Markets

New biofuel mandates are also expanding global import demand. Vietnam introduced a nationwide E10 mandate in June 2026, with its ethanol consumption forecast to be more than eight times last year’s level. U.S. exports to Vietnam reached 73 million liters in the first six months of 2026, already eight times the 2025 total.

The USDA said changes in biofuel policies, trade agreements, energy prices and geopolitical developments will remain key factors shaping U.S. ethanol exports during the rest of 2026.