India’s ethanol blending programme has shown strong progress in the first half of the Ethanol Supply Year (ESY) 2025-26, with supplies reaching about 515 crore litres, according to estimates compiled by the All India Distillers’ Association.
The data shows that nearly 49 per cent of the total contracted volume of 1,059 crore litres has already been supplied in the first six months. This reflects the sector’s growing production capacity and its increasing role in improving the country’s energy security and reducing dependence on crude oil, Business Today reported.
A key development highlighted in the data is the rise of maize as the largest source of ethanol in India. This marks a major shift in the country’s biofuel sector, which has traditionally relied more on sugarcane-based feedstock, Business Today reported.
Industry experts said the growing use of maize points to a more balanced and stable supply system, which can support higher blending targets in the future. The data also shows a better balance between grain-based and sugarcane-based distilleries, helping ensure steady ethanol supply throughout the year.
Grain-based distilleries contributed around 333 crore litres during the period, with maize accounting for the largest share. Stakeholders believe this shift is a turning point for the sector.
Experts noted that maize offers several advantages, including year-round availability, easier supply management and lower water usage compared to other feedstock. It is also seen as suitable for supporting higher blending targets beyond E20.
The increasing use of maize is expected to drive fresh investments in storage facilities, rural supply chains, ethanol production capacity and agricultural processing infrastructure across different states.
The steady rise in ethanol supplies is also seen as a positive step towards India’s clean energy goals, especially as countries around the world are increasing the use of biofuels to cut fossil fuel use and reduce emissions.
Vijendra Singh, president, AIDA said India’s ethanol programme has entered a strong growth phase and requires stable long-term policies to reach its full potential. He added that the rise of maize as a key feedstock reflects the sector’s growing strength, diversification and long-term sustainability.
