Maize becomes India’s No.1 ethanol feedstock as grain-based supply hits record high: AIDA

The All India Distillers’ Association (AIDA) said that in the Ethanol Supply Year (ESY) 2024-25, maize has officially overtaken traditional feedstocks to become the primary driver of India’s Ethanol Blended Petrol (EBP) Programme, signalling a new era of agricultural diversification and energy security.

“India’s ethanol supply programme continues to demonstrate strong momentum, with cumulative supplies reaching approximately 1,039 crore litres against a contracted volume of 1,163 crore litres, reflecting an overall 89% fulfilment,” the Association said in a press statement.

The data highlights the Grain-based feedstocks accounted for 718 crore litres, representing nearly 69% of the total ethanol supplied, while sugarcane-based feedstocks contributed 321 crore litres, or about 31% of total volumes.

According to the latest data shared by AIDA, maize now contributes a staggering 48% to 51% of the total ethanol supply. This is a significant structural shift from previous years, where sugarcane-based feedstocks dominated the market.

Out of the total ethanol allocated for the current cycle, maize-based production has seen unprecedented growth, supported by favourable government policies and increased procurement prices (₹71.86 per litre for maize-based ethanol).

Contributions from other grain sources, including damaged food grains and surplus grains, alongside sugarcane juice, B-heavy molasses, and C-heavy molasses, continue to provide a balanced feedstock mix.

Key Data Analysis (ESY 2024-25):

  • Dominance of Grains: Maize has emerged as the single largest feedstock, surpassing other feedstocks.
  • Diverse Feedstock Mix: While maize leads at ~48%, the rest of the supply is balanced by broken rice, damaged food grains, molasses and others.
  • Capacity Expansion: The industry now boasts a cumulative capacity of around 2,000 crore litres, with over 380 dedicated distilleries operational and another 33 in the pipeline.
  • Blending Success: India has already achieved a 20% blending target in 2025.

Vijendra Singh, President, AIDA, said: “The latest ethanol supply data reflects the growing maturity and resilience of India’s biofuel ecosystem. The increasing contribution of maize and other grain-based feedstocks is strengthening supply stability while reducing dependence on any single source. With maize now contributing nearly 50% of our feedstock, we have successfully decoupled ethanol production from the sugar cycle”.

He said that this not only ensures a year-round supply of biofuel but also provides a massive boost to maize farmers across the country.

As India progresses beyond E20, the transition is no longer constrained by supply but by the ability to create a sustained and scalable demand. AIDA has urged the Government for policy beyond E20 and further explore ethanol-diesel and isobutanol blending to utilise the massive surplus capacity we have built,” he said.

Economic and Environmental Impact

 The Association said that the shift to maize has helped stabilise the rural economy, ensuring that farmers receive prices at or above the Minimum Support Price (MSP). Furthermore, the diversification reduces the industry’s vulnerability to monsoon-related fluctuations in sugarcane production.

To date, the EBP programme has saved over ₹1,55,000 crore in foreign exchange and significantly reduced CO2 emissions.

AIDA emphasises that with current production capacities scaling rapidly, the industry is ready to support higher blending mandates. The association is advocating for the promotion of Flex-Fuel Vehicles (FFVs) and the exploration of ethanol-diesel blends to absorb the growing surplus and further reduce India’s crude oil import bill.

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