Grain-based ethanol could save India Rs 1.28 crore by decade end: Report

India’s Ethanol Blended Petrol (EBP) Programme has emerged as a global benchmark in clean energy transition, achieving nearly 20% ethanol-petrol blending which is well ahead of its 2025 target.

A high-level roundtable joined by policymakers, industry leaders and experts drew the vision for future course of India’s ethanol journey. During the sitting, a ‘Thought Leadership Report’ report was released, offering a strategic roadmap to position ethanol as a key enabler of energy security, rural development, and climate action. The report emphasizes the importance of enhanced policy support, stakeholder collaboration, and technological investment to scale up ethanol production—especially from grain-based sources like maize and surplus rice.

India’s ethanol blending has witnessed a remarkable rise, jumping from just over 10% in 2022 to 19.7% by February 2025. This progress has placed India among the global leaders in renewable fuel adoption.

A central theme in the ‘Thought Leadership Report’ was food security. It clarified that India is a grain-surplus nation, producing about 165 lakh metric tonnes of excess grain annually—more than enough to meet food and ethanol production needs without creating shortages.

Prepared by the Grain Ethanol Manufacturers Association (GEMA), the report projects that grain-based ethanol could help India save over Rs 1.28 lakh crore in foreign exchange between 2025 and 2030. It identifies maize and broken rice as vital feedstocks, citing maize’s high ethanol yield and low water usage as critical advantages for sustainable production.

The report estimates that utilizing the annual grain surplus could generate over Rs 35,000 crore in direct payments to farmers, significantly boosting rural incomes and helping reduce urban migration by creating local economic opportunities.

However, the roadmap also highlights several hurdles facing the grain ethanol industry. These include rising maize prices, stagnant ethanol procurement rates, and reduced margins from ethanol by-products like Distillers Dried Grains with Solubles (DDGS). Key recommendations include dynamic pricing for ethanol, expanded maize cultivation, assured surplus rice supply from the Food Corporation of India (FCI), and improved market access for co-products.

“India’s ethanol success is a result of bold policy decisions and collaborative industry efforts. The grain-based ethanol industry, in particular, holds immense potential to drive rural economic development, enhance farmer incomes, and ensure year-round ethanol production. It must be actively promoted through supportive policies, assured feedstock supply, and fair pricing mechanisms,” said Sanjay Ganjoo, Director General of Indian Federation of Green Energy (IFGE).

Abhinav Singal, Treasurer, GEMA, added, “In the last two years, Grain Ethanol Industry has grown & become the largest contributor to the EBP of India. Still, India being a Grain surplus country- the Grain Ethanol Industry requires timely support from Government of India with right policy initiatives & direction to grow and thrive in the future.”