Maize emerges as India’s top ethanol feedstock as supplies surpass 515 crore litres

India's cumulative ethanol supplies reached approximately 515 crore litres in the first half of Ethanol Supply Year (ESY) 2025-26 — nearly 49% of the contrac...

What Happened

India's cumulative ethanol supplies reached approximately 515 crore litres in the first half of Ethanol Supply Year (ESY) 2025-26 — nearly 49% of the contracted annual target of 1,059 crore litres.
For the first time, maize has displaced sugarcane-based feedstocks to become the single largest contributor to India's ethanol blending programme, accounting for approximately 182 crore litres out of total grain-based distillery output of ~333 crore litres.
Grain-based distilleries as a category have overtaken sugarcane-based supplies in total ethanol production.
The government allocated 125.78 lakh metric tonnes (LMT) of maize specifically for ethanol production during ESY 2025-26.
The All India Distillers' Association (AIDA) attributes this shift to maize's year-round availability, lower water consumption, and greater scalability for future higher-blending targets beyond E20.

Static Topic Bridges

National Biofuel Policy 2018 and the Ethanol Blending Programme (EBP)

India's Ethanol Blended Petrol (EBP) Programme was launched in January 2003 with an initial target of 5% ethanol blending. The National Policy on Biofuels, 2018, provided a comprehensive framework, categorising biofuels by generation and laying out feedstock diversification goals.

The EBP Programme was initiated on September 3, 2002, with commercial rollout in January 2003.
The National Biofuel Policy 2018 classifies biofuels as 1G (first generation — from food/feed crops), 2G (from agricultural waste), 3G (from algae), and advanced biofuels.
In 2020, the Cabinet Committee on Economic Affairs (CCEA) advanced the E20 target from 2030 to 2025.
The National Policy on Biofuels 2018, as amended in 2022, further advanced the E20 deadline to ESY 2025-26.
Oil Marketing Companies (OMCs) — Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum — are the primary ethanol procurement agencies.
India achieved 10% blending in June 2022 (five months ahead of schedule), 12.06% in ESY 2022-23, 14.60% in ESY 2023-24, and 17.98% in ESY 2024-25.

Connection to this news: The surge in maize-based ethanol is a direct outcome of the feedstock diversification mandated under the National Biofuel Policy 2018. By allowing grain-based distilleries — and specifically maize — into the EBP framework from 2018 onward, the policy created the market signal that prompted large-scale investment in grain-based distillery capacity.

Maize as a Strategic Crop

Maize (Zea mays) is India's third most important cereal crop after wheat and rice. Historically cultivated primarily for food and animal feed (especially poultry), it has rapidly gained prominence as an industrial feedstock.

India produces approximately 35–40 million tonnes of maize annually, with major growing states including Karnataka, Andhra Pradesh, Telangana, Maharashtra, and Bihar.
Maize requires approximately 500–600 mm of water per crop cycle, compared to sugarcane's 1,500–2,500 mm — making it significantly more water-efficient as a fuel feedstock.
Unlike sugarcane, which is harvested seasonally (October-March), maize can be cultivated in both kharif and rabi seasons, providing more consistent year-round feedstock supply to distilleries.
The shift to maize for ethanol has increased maize cultivation area sharply since 2020, with area under maize rising notably in states that previously focused on rice and sugarcane.
Government support includes an administered procurement price for maize used in ethanol — providing price stability to farmers.

Connection to this news: Maize's rise as the top ethanol feedstock is both a policy achievement and an agricultural transformation. It signals that India's biofuel economy is moving from sugar-surplus-dependent production toward a more diversified, scalable, and water-efficient feedstock model — critical for achieving E20 and beyond.

Energy Security and Import Substitution through Ethanol

The EBP Programme serves a dual purpose: it reduces petroleum import dependence and provides an additional revenue stream for farmers and the agricultural sector.

Every 1% increase in ethanol blending reduces petrol import dependence by approximately 60–65 crore litres per year.
At E20, India would save approximately ₹30,000 crore annually in foreign exchange outgo on petrol imports (based on pre-crisis oil prices).
Ethanol-blended petrol burns more cleanly, reducing tailpipe emissions of hydrocarbons and carbon monoxide.
The government has set an administered price for ethanol from different feedstocks: C-heavy molasses (₹57.61/litre), B-heavy molasses (₹60.73/litre), sugarcane juice/sugar syrup (₹65.61/litre), and grain-based ethanol (₹71.86/litre for ESY 2024-25 rates).
India's ethanol-blending target beyond E20 is being planned through a separate roadmap for E25 and E30.

Connection to this news: The 515 crore litres supplied in the first half of ESY 2025-26 represents India's most successful EBP performance to date. The leadership of maize in this achievement demonstrates that the programme's feedstock diversification strategy is working — reducing dependence on any single crop and aligning with both energy security and agricultural income objectives.

Environmental Implications of Biofuels

Biofuels are a contested area of environmental policy — while they reduce fossil fuel dependence, their land use, water consumption, and food-versus-fuel trade-offs require careful management.

Biofuels are classified as renewable energy under India's National Action Plan on Climate Change (NAPCC) and contribute to India's Nationally Determined Contributions (NDCs) under the Paris Agreement.
India's NDC commits to achieving 45% reduction in emissions intensity of GDP by 2030 (compared to 2005 levels) and meeting 50% of energy requirements from non-fossil fuel sources.
The food-fuel conflict is a real risk: diverting maize to ethanol can reduce availability for food and feed industries if overall production does not expand proportionately. The government has asserted that current maize supplies are sufficient for all uses.
The International Energy Agency (IEA) categorises sugarcane-based ethanol as more carbon-efficient than corn/maize-based ethanol on a lifecycle basis, though the water saving advantage of maize is significant for water-stressed India.

Connection to this news: As India scales up maize-based ethanol, regulators and policymakers need to monitor the food security and environmental trade-offs. The current government position — that maize availability is sufficient for ethanol, poultry, and food uses — will need to be validated as demand grows further beyond E20.

Key Facts & Data

Cumulative ethanol supply in first half of ESY 2025-26: ~515 crore litres (49% of annual target of 1,059 crore litres).
Maize's contribution: approximately 182 crore litres — the single largest feedstock for the first time.
Total grain-based distillery output: approximately 333 crore litres.
Government maize allocation for ethanol: 125.78 LMT in ESY 2025-26.
EBP Programme launched: January 2003 (announced September 3, 2002).
E20 target originally set for 2030; advanced to 2025 in 2020; further confirmed for ESY 2025-26 in 2022 amendment to National Biofuel Policy.
Blending levels: 10% achieved June 2022; 14.60% in ESY 2023-24; 17.98% in ESY 2024-25.
Water requirement: maize ~500-600 mm/cycle vs. sugarcane ~1,500-2,500 mm/cycle.
India's annual maize production: approximately 35–40 million tonnes.
Ethanol administered price for grain-based ethanol: ₹71.86/litre (ESY 2024-25 rates).