Ethanol Production in India and Its Impact on Markets
06-Sep-2025 09:40 AM
Ethanol Production in India and Its Impact on Markets
★ In 2019–20, India produced 1,730 crore liters of ethanol, when blending was at 5%. In 2020–21 blending reached 8.5%, in 2021–22 it was 10%, in 2022–23 it rose to 12%, in 2023–24 it reached 15%, and in 2024–25 and 2025–26 it touched 20%.
★ In 2025–26, total ethanol production reached 1,016 crore liters, of which 466 crore liters came from grain and 550 crore liters from sugar.
★ In 2022–23, ethanol production was 988 crore liters (438 crore liters from grain and 550 crore liters from sugar), while in 2023–24 total ethanol production was 698 crore liters.
★ Initially, ethanol was produced from molasses, later production from grains was also approved.
★ Considering the sugar situation, last year ethanol production from sugar was stopped, but it has now been reopened.
★ Currently, not only maize but also sugar, rice, and other grains are being used for ethanol production.
★ In July, 14.2 million tonnes of maize were expected to be used, but actual usage was only 8.1 million tonnes.
★ About 5 million tonnes of sugar will be used for ethanol production. In addition, 5.2 million tonnes of rice have also been allocated for ethanol.
★ Overall, the demand for maize for ethanol production may decline compared to earlier levels.
★ A good maize crop is expected this year.
★ Ethanol is unlikely to have much impact on rice, as the rice being used comes from FCI supplies.
★ If sugar usage for ethanol increases, carryover stocks may reduce, which could impact sugar prices.