Grain-Based Ethanol to Offset Shortfall from Sugarcane

09-Apr-2025 06:14 PM

New Delhi: As in the previous year, limited availability of sugarcane may impact ethanol production in India. However, the shortfall is expected to be compensated by grain-based ethanol, particularly from rice and maize.

While there is no official cap on sugarcane usage this year, lower production has already hindered ethanol output.

The government had initially estimated 42–45 lakh tonnes of sugar-equivalent sugarcane for ethanol, but this is now likely to drop to 32–35 lakh tonnes.

To address the gap, the government has allocated 24 lakh tonnes of rice from Food Corporation of India (FCI) stocks for distilleries, priced at Rs 2250 per quintal.

Distilleries with dual-feed facilities—capable of processing both sugarcane and grains—can continue operations using grains even after sugarcane supply ends.

Critics point out that rising grain ethanol production could stabilize the situation. Maize production is expected to improve, and imports may rise if needed.

With ample stocks of subsidized rice and competitive grain prices domestically, ethanol output from grains is likely to increase this season, helping maintain the momentum in India's ethanol blending program.