India's ethanol industry has emerged as a standout success story in the global clean energy landscape, having achieved near 20% ethanol blending in petrol ahead of the 2025 target. In a significant step towards shaping the future of the sector, a high-level roundtable convened on Wednesday (Apr 9) brought together senior government officials, ethanol producers, policymakers, and industry leaders to deliberate on the next phase of India’s Ethanol Blended Petrol (EBP) Programme.

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Thought leadership report, a strategic roadmap highlighting the critical role of ethanol in advancing India’s triple mandate of energy security, rural development, and climate action.

India’s ethanol milestones: A platform for progress

From achieving 10% ethanol blending ahead of schedule in 2022 to reaching a remarkable 19.6% blending in January 2025, India has demonstrated its capability to scale clean energy solutions rapidly. The ethanol blending initiative has already saved over $130 billion in foreign exchange, substituted nearly 185 lakh metric tonnes of crude oil, and reduced 557 lakh metric tonnes of CO₂ emissions.

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The report also addressed myths around India’s food security, showing it is a grain surplus country which can cater to the needs of food and ethanol production without causing scarcity.

Every year, India has a surplus of around 165 lakh metric tonnes of grain that could be used for ethanol.

Opportunities and challenges: Charting a sustainable path forward

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The thought leadership report identifies grain-based ethanol, particularly from maize and surplus grains like broken rice, as a key lever for sustainable expansion. It emphasises the environmental and economic advantages of maize—India’s least water-intensive feedstock with strong ethanol conversion efficiency. The report projects that surplus grain could be utilised annually to generate over $350 billion in direct payments to farmers, reinforcing rural prosperity and arresting urban migration.

However, to maintain this momentum, the sector faces critical challenges:

  • Feedstock availability and price pressures, especially with rising maize costs and inter-sector competition.

  • Ethanol procurement pricing, which has not kept pace with feedstock cost increases.

  • Falling by-product margins, such as Distiller’s Dried Grains with Solubles (DDGS), impacting distillery viability.

Strategic Policy Recommendations

The roundtable and report call for urgent, actionable reforms, including:

  • Scaling up maize cultivation across the country.

  • Introducing dynamic pricing for grain ethanol to address feedstock cost increase.

  • Ensuring an uninterrupted supply of damaged, broken, and surplus FCI rice until maize production ramps up.

  • Promoting strong domestic market linkages for ethanol by-products like DDGS.

“We understand the current challenges of India’s grain ethanol story industry. There is a roadmap being planned; it will address multiple issues –feedstock availability and supply of broken and surplus rice from FCI, scope for E100/E93/E85, possibility of SAF (Sustainable Aviation Fuel), etc. We need to work together on this,” said Ashwini Srivastava, Joint Secretary, Department of Food and Public Distribution.

“Ethanol Blending program (EBP)” is a great step forward by the GOI to ensure India’s future energy security, rural development, increasing farmer’s income manifold and reducing carbon footprint in the environment. 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," said, Abhinav Singal, Treasurer, Grain Ethanol Manufacturers Association (GEMA).

"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," said Sanjay Ganjoo, Director General, IFGE (Indian Federation of Green Energy).

"It must be actively promoted through supportive policies, assured feedstock supply, and fair pricing mechanisms. This roundtable is a step toward building consensus among stakeholders and crafting actionable strategies that will ensure long-term sustainability and growth of the ethanol sector. IFGE remains committed to enabling a robust and future-ready ethanol ecosystem that supports India’s clean energy transition and national energy security," Ganjoo added.