India supplies 895 crore litres of ethanol by August, reaches 85% of target

India supplied 895 crore litres of ethanol by the end of August under the Ethanol Supply Year (ESY) 2025-26, with grain-based feedstocks accounting for nearly 70 per cent of total supplies, according to data released by the All India Distillers' Association (AIDA).

The cumulative supply represents around 85 per cent of the 1,048 crore litres contracted for the period. Grain-based feedstocks contributed 624 crore litres, while sugar-based feedstocks accounted for 271 crore litres.

Among grain-based sources, maize was the largest contributor, supplying 345 crore litres of ethanol. Surplus rice sourced from the Food Corporation of India contributed 214 crore litres, while damaged food grains accounted for 64 crore litres.

In the sugar-based segment, sugarcane juice contributed 149 crore litres, followed by B-heavy molasses at 107 crore litres and C-heavy molasses at 15 crore litres.

AIDA said the figures reflect the growing diversification of India's ethanol supply ecosystem and reduce dependence on any single feedstock. Bharati Balaji, Deputy Director General, AIDA, said the increasing contribution from grain-based sources, particularly maize and surplus FCI rice, demonstrates the industry's ability to utilise multiple domestic agricultural resources.

The association, however, highlighted the need for adequate and predictable demand as domestic ethanol production capacity and supplies continue to expand.

The issue is expected to become increasingly important as India looks beyond its current ethanol-blending programme and explores wider applications, including flex-fuel vehicles (FFVs), compressed biogas (CBG) and sustainable aviation fuel (SAF).