iGEN
Visit IGEN World Explore IGEN Expo
EXPLORE UPGRADE PLANS
BREAKING
UPS shift away from Amazon shows bigger payoff Lanesurf: 62% of Loads Get Vetted Carrier Offers Before Brokers Arrive India-China Border Trade Via Lipulekh Resumes Aug 1; China Permits 20 Traders Geopolitics Drives CMA CGM Q2 Profit Surge of 42% as Volumes and Rates Climb Benchmark Diesel Price Rises Third Week as Futures Plunge; Spread Hits Record Indian Government Limits Sugar Dealers to 400 Tonnes Stock Until November to Curb Hoarding Tenants signing longer leases for larger warehouses as 3PLs lock in capacity US stock market flat as S&P 500 and Dow barely move, Nasdaq slides over 1% on chip rout TruAlt Bioenergy Q1 Net Zooms to ₹59.27 Crore on Higher Revenues, Capacity Expansion India’s cotton sowing crosses 100 lakh hectares as monsoon picks up, area expands in key states UPS shift away from Amazon shows bigger payoff Lanesurf: 62% of Loads Get Vetted Carrier Offers Before Brokers Arrive India-China Border Trade Via Lipulekh Resumes Aug 1; China Permits 20 Traders Geopolitics Drives CMA CGM Q2 Profit Surge of 42% as Volumes and Rates Climb Benchmark Diesel Price Rises Third Week as Futures Plunge; Spread Hits Record Indian Government Limits Sugar Dealers to 400 Tonnes Stock Until November to Curb Hoarding Tenants signing longer leases for larger warehouses as 3PLs lock in capacity US stock market flat as S&P 500 and Dow barely move, Nasdaq slides over 1% on chip rout TruAlt Bioenergy Q1 Net Zooms to ₹59.27 Crore on Higher Revenues, Capacity Expansion India’s cotton sowing crosses 100 lakh hectares as monsoon picks up, area expands in key states
Home ›› Commodities ›› Commodities Energy ›› Grain-based ethanol gains momentum: What it means for India's blending programme

Grain-based ethanol gains momentum: What it means for India's blending programme

India's ethanol blending programme has crossed 717 crore litres cumulative supplies by June 2026, with grain-based ethanol contributing nearly 480 crore litres. The shift to maize and surplus grains provides resilience against crop failures, supports rural industry, and advances energy security.

iG
iGEN Editorial
July 25, 2026
Grain-based ethanol gains momentum: What it means for India's blending programme

India's ethanol blending programme has quietly become one of the country's better clean energy stories, according to The Hindu BusinessLine. By June 2026, cumulative supplies under the Ethanol Blended Petrol (EBP) Programme had crossed 717 crore litres. Nearly 480 crore litres of that came from grain feedstocks, while sugarcane-based sources accounted for roughly 238 crore litres. The proportion marks a significant shift, as grain-based ethanol now does much of the heavy lifting.

Supply shift to grain-based ethanol

The programme, which achieved its 20 per cent blending target in December 2025—well ahead of schedule—is now underpinned by a multi-feedstock model. A programme built on a single crop is at the mercy of that crop, and grain-based ethanol gives the system a cushion it never had before. Multiple feedstocks work in tandem to keep supplies flowing through the year.

Maize and grain feedstocks

Maize has become the largest grain contributor, reflecting real gains in farm productivity and growing farmer confidence that demand is here to stay. Surplus Food Corporation of India (FCI) stocks and damaged grains are also being used, turning resources that might otherwise go to waste into fuel. Grain distilleries have brought jobs to rural districts, and around each plant a local supply chain has taken shape—storage, transport, processing, logistics.

Feedstock Cumulative supply (crore litres)
Grain-based 480
Sugarcane-based 238
Total 717

Complementing sugar ethanol

Grain ethanol is not here to replace sugar ethanol—the two complement each other. Sugarcane juice, maize, surplus grains, and damaged grains together form a multi-feedstock model where a shortfall in one stream can be absorbed by the others. This redundancy is a feature, not an accident. The success required years of coordination between the government, oil marketing companies, farmers, and the distillery industry, backed by serious investment in distillation capacity, now around 2,000 crore litres, and consistent policy support.

Outlook and implications

Sustaining this momentum will need continued policy stability, logistics infrastructure, further gains in agricultural productivity, and a willingness to adopt advanced biofuel technologies. Feedstock diversification should stay at the centre of the strategy—growth must not come at the cost of overburdening any one crop. Every litre of ethanol produced domestically and blended into petrol is a litre of imported fuel the country does not buy, saving foreign exchange and cutting greenhouse gas emissions. The rise of grain-based ethanol shows an ecosystem that has learned to adapt to weather, markets, and shifting agricultural realities, lifting farmer incomes and moving India closer to its clean energy goals.


Sources: AGRI_TIO

Keep Reading

Recommended Stories

India Clears E100 Fuel Framework, Accelerating Ethanol Vehicle Rollout and Impor Commodities

India Clears E100 Fuel Framework, Accelerating Ethanol Vehicle Rollout and Impor

India has approved the regulatory framework for 100% ethanol (E100) as a vehicular fuel, enabling the commercial deployment of ethanol-powered cars and two-wheelers. The move, announced by Union Minister Nitin Gadkari, aims to reduce India's dependence on imported crude oil (over 85% imports) and create new demand for agricultural feedstocks, while giving automakers regulatory certainty to invest in flex-fuel platforms.

June 14, 2026
ISMA defends E20 fuel, cites scientific evidence; remains silent on mileage drop claims Commodities

ISMA defends E20 fuel, cites scientific evidence; remains silent on mileage drop claims

The Indian Sugar and Bio-Energy Manufacturers Association (ISMA) has dismissed public concern over E20 ethanol blended petrol, stating that the conversation should be based on scientific evidence and official clarifications. While automakers claim mileage drop is marginal (3-3.5%), social media users report a 20-30% reduction. The government and industry bodies defend the fuel, citing emissions cuts and foreign exchange savings of over Rs 1.4 lakh crore.

July 8, 2026
India's Ethanol Push: E85 Fuel Price Drops by Rs 20/Litre Commodities

India's Ethanol Push: E85 Fuel Price Drops by Rs 20/Litre

India is set to reduce the price of E85 fuel by Rs 20 per litre as part of its ethanol adoption strategy. This move aims to compensate for the lower energy content of ethanol and reduce fossil fuel imports.

June 7, 2026
India’s open market rice sale norms will likely help meet 20% ethanol blending target Commodities

India’s open market rice sale norms will likely help meet 20% ethanol blending target

The Indian government revised its standard operating procedure for sale of rice to ethanol distilleries for the 2026-27 supply year, allocating 7.2 million tonnes from FCI stocks and fixing prices at ₹2,320 per quintal till October 31 and ₹2,390 after. Trade experts say the move will help meet the 20% ethanol blending target while utilizing aged stocks, though large diversion may affect non-basmati rice exports.

July 24, 2026