Indian distilleries have supplied 68 per cent of the contracted ethanol volume in the first eight months of the Ethanol Supply Year (ESY) 2025-26, according to the All India Distillers’ Association (AIDA). Cumulative supplies reached 717 crore litres as of June 2026, against total contracted volumes of 1,048 crore litres placed by oil marketing companies (OMCs).
Supply Composition and Feedstock Breakdown
The delivered ethanol reflects a diversified feedstock mix. Maize-based biofuel contributed the largest share at 36 per cent, followed by surplus food grains from the Food Corporation of India (FCI) at 25 per cent, and sugarcane juice at 20 per cent. Other feedstocks include B-Heavy Molasses and Damaged Food Grains.
| Feedstock | Volume (crore litres) | Share of total supply |
|---|---|---|
| Maize | 258 | 36% |
| Surplus FCI grains | 177 | 25% |
| Sugarcane juice (SCJ) | 144 | 20% |
| B-Heavy Molasses | 82 | 11% |
| Damaged Food Grains | 45 | 6% |
| Others | 11 | 2% |
| Source: AIDA statement, July 2026. |
Distillery Type Performance
According to AIDA, grain-based distilleries supplied 480 crore litres (67 per cent of total deliveries), while sugarcane-based units contributed 238 crore litres (33 per cent). Notably, out of the total contracted 1,048 crore litres, sugar-based distilleries received only 289 crore litres (28 per cent of total contract) but have fulfilled over 82 per cent of their obligation. In contrast, grain-based distilleries, which secured the bulk — 759 crore litres (72 per cent of total contract) — supplied 63 per cent of their commitment.
The data shows that maize remains India’s single largest ethanol feedstock, with 258 crore litres supplied. The contribution from surplus FCI grains reached 177 crore litres, while sugarcane juice (SCJ) added 144 crore litres, B-Heavy Molasses 82 crore litres, and Damaged Food Grains 45 crore litres.
Diversification and Resilience
AIDA highlighted that the balanced feedstock mix has strengthened supply resilience. “The balanced contribution from multiple feedstocks has significantly strengthened supply resilience, reduced dependence on any single agricultural crop and enabled uninterrupted ethanol availability throughout the year,” the association said in a statement.
“The latest ethanol supply data demonstrates that India’s biofuel programme has evolved into a robust and resilient ecosystem driven by diversified feedstocks. While maize continues to be the largest contributor, the increasing participation of surplus food grains and sugarcane-based feedstocks reflects the strength of a balanced supply chain. This diversification reduces dependence on any single crop, enhances year-round feedstock availability and strengthens India’s energy security.” — Vijendra Singh, President, AIDA
Outlook and Policy Context
As India moves beyond the E20 blending milestone, industry stakeholders call for policy support to fully utilise production capacity. Singh emphasised that “policy support for higher ethanol blends, Flex-Fuel Vehicles (FFVs), ethanol-diesel blending and next-generation biofuels will be essential”. The ESY 2025-26 runs from November 2025 to October 2026, and with 68 per cent of contracted volumes already delivered by June, the remaining four months will be critical for full contract fulfilment.
The supply data underscores the growing maturity of India’s biofuel ecosystem, with grain-based feedstocks increasingly dominating production while maintaining a balanced mix. For commodity traders and procurement teams, the strong supply from diverse sources suggests stable availability, though the lower fulfilment rate by grain-based distilleries (63%) versus sugar-based units (82%) may warrant monitoring for potential supply gaps in the coming months.
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