AIDA says India’s ethanol supply stood 895 crore litres by August

India’s cumulative ethanol supply reached 895 crore litres by the end of August 2026, covering around 85% of the 1,048 crore litres contracted for Ethanol Supply Year (ESY) 2025-26, with grain-based feedstocks accounting for nearly 70% of supplies, according to data compiled by the All India Distillers’ Association (AIDA).

AIDA says that of the total volume supplied so far, 624 crore litres came from grain-based feedstocks, while sugar-based feedstocks contributed 271 crore litres, highlighting the growing diversification of India’s ethanol supply ecosystem.

Among grain-based sources, maize was the largest contributor at 345 crore litres, followed by surplus Food Corporation of India (FCI) rice at 214 crore litres and damaged food grains at 64 crore litres.

Sugar-based feedstocks, meanwhile, contributed 271 crore litres. Sugarcane juice accounted for the largest share at 149 crore litres, followed by B Heavy Molasses at 107 crore litres and C Heavy Molasses at 15 crore litres.

Bharati Balaji, Deputy Director General, AIDA, said the August-end figures demonstrate the significant evolution of India’s ethanol supply ecosystem.

“Nearly 70% of the 895 crore litres supplied so far has come from grain-based feedstocks, with maize contributing 345 crore litres and surplus FCI rice contributing another 214 crore litres,” Balaji said.

AIDA added that sugar-based feedstocks continue to provide a substantial share of supplies, with the availability of multiple domestic agricultural resources strengthening the ethanol programme and reducing dependence on any single feedstock.

However, AIDA cautioned that expanding production capacity would need to be matched with adequate and predictable avenues for ethanol utilisation.

This challenge is expected to become more important as India moves beyond the existing ethanol-blending programme towards wider applications, including flex-fuel vehicles (FFVs), compressed biogas (CBG), sustainable aviation fuel (SAF) and other bioenergy pathways.

The increasing contribution of grains also signals a broader shift in India’s ethanol market, with multiple agricultural feedstocks now supporting the country’s blending programme.

In a conversation with I Am Renew, AIDA President Vijendra Singh said recently that ethanol offers a major opportunity to put excess agricultural produce to productive use, while easing the stress on both farmers and the government.