Maize overtakes sugarcane as India's No. 1 ethanol feedstock: 182 crore litres from maize in H1 of ESY 2025-26; total ethanol supply ~515 crore litres (49% of 1,059-cr-litre contract); sugarcane-based 182 cr litres (62% of its contracted share); SCJ 130 cr + BHM 45 cr + CHM 7 cr.
Why in News
Industry estimates released by the All India Distillers' Association (AIDA) indicate that, for the first time in the history of India's Ethanol Blended Petrol (EBP) Programme, maize has emerged as the single largest ethanol feedstock, contributing approximately 182 crore litres in the first half of Ethanol Supply Year (ESY) 2025-26. Cumulative ethanol supplies during the same six-month period (November 2025–April 2026) crossed approximately 515 crore litres against a total contracted volume of about 1,059 crore litres — meaning roughly 49% of the annual contract has already been delivered in the first half of the supply year. Grain-based ethanol (maize + surplus rice + damaged food grains) led the supply: maize at 182 cr litres, surplus rice/food grains at ~125 cr litres, and damaged food grains at ~26 cr litres. Sugarcane-based ethanol also delivered around 182 cr litres, but represented only about 62% of its contracted volume, with the breakup as Sugarcane Juice (SCJ) ~130 cr litres, B-heavy molasses (BHM) ~45 cr litres, and C-heavy molasses (CHM) ~7 cr litres. Monthly supplies remained strong — December 2025 (~102 cr litres), March 2026 (~95 cr litres) and April 2026 (~92 cr litres). The shift to maize is significant: maize offers year-round availability, lower water-intensity than sugarcane and higher compatibility with India's plans to move beyond E20 blending towards higher targets such as E30 by 2030. The story is exam-relevant for India's energy transition, agricultural diversification, GST on biofuels, the National Biofuels Policy 2018 (amended 2022) and the targets of the EBP Programme.
At a Glance
- Programme
- Ethanol Blended Petrol (EBP) Programme under MoPNG.
- Period
- First half of ESY 2025-26 (Nov 2025-Apr 2026).
- Total ethanol supplied
- ~515 crore litres.
- Contracted volume for the year
- ~1,059 crore litres.
- % of contract supplied in first half
- ~49%.
- Top feedstock
- Maize — ~182 cr litres (first time on top).
- Sugarcane
- ~182 cr litres (62% of contracted share).
- Sugarcane breakup
- SCJ 130 + BHM 45 + CHM 7 cr litres.
- Other grain-based
- rice/food grains 125 cr + damaged grains 26 cr litres.
- Monthly
- Dec 2025 ~102, Mar 2026 ~95, Apr 2026 ~92 cr litres.
Ethanol Blended Petrol (EBP) Programme — what and why
The Ethanol Blended Petrol (EBP) Programme is run by the Ministry of Petroleum and Natural Gas through Oil Marketing Companies (OMCs — IOCL, BPCL, HPCL). Under the programme, OMCs blend ethanol (an alcohol derived from sugar/grain-based feedstocks) with petrol to reduce dependence on imported crude oil, cut carbon emissions, and provide an alternative market for surplus agricultural produce. The blending year — called the Ethanol Supply Year (ESY) — runs from November to October, aligned with the sugar season. India set itself a target of 20% blending (E20) by 2025-26 (originally aimed at 2030, then advanced to 2025-26); the target was achieved on a national-average basis ahead of schedule, with the country now pushing for E30 by 2030 (and ultimately higher) under the National Biofuels Policy, 2018 (amended 2022). The 2022 amendment also allowed use of additional feedstocks such as damaged food grains, broken rice, maize, sugar beet, and unfit-for-consumption potatoes for ethanol production.
The maize shift — why maize is now No. 1
For the first time, maize-based ethanol has overtaken sugarcane-based ethanol on the feedstock leaderboard in the first half of ESY 2025-26. The structural drivers are: (1) Year-round availability: maize is harvested in multiple seasons (kharif and rabi), giving distilleries a smoother supply curve compared with sugarcane's seasonal crushing cycle; (2) Lower water footprint: maize typically needs ~600–800 mm of water versus sugarcane's ~2,000+ mm, easing pressure on India's water-stressed cane belt in Maharashtra, Karnataka and parts of UP; (3) Scalability beyond E20: as India targets E30 and higher, sugarcane-led capacity faces hydrological and political limits, whereas maize cultivation can be expanded into rain-fed and non-irrigated zones; (4) Pricing and contracts: the Government has rationalised ethanol procurement prices annually under the EBP Programme to encourage diversified feedstocks; FCI now releases surplus rice and damaged food grains for ethanol use at notified prices; (5) Industrial capacity: most new ethanol-producing distilleries since 2022 are dual-feed or grain-focused.
Numbers behind the headline
Total ethanol supplied in the first half of ESY 2025-26: ~515 crore litres (against contracted ~1,059 crore litres — about 49%). Grain-based ethanol leaders: Maize ~182 crore litres, surplus rice/food grains ~125 crore litres, damaged food grains ~26 crore litres. Sugarcane-based ethanol: ~182 crore litres, which is about 62% of its contracted volume — broken down as Sugarcane Juice (SCJ) ~130 crore litres, B-heavy molasses (BHM) ~45 crore litres and C-heavy molasses (CHM) ~7 crore litres. Monthly trajectory: December 2025 ~102 crore litres, March 2026 ~95 crore litres, April 2026 ~92 crore litres. The strong monthly cadence reflects expanded distillery capacity, financial incentives, and the regularisation of grain-based pricing.
Policy framework — National Biofuels Policy, 2018
The National Policy on Biofuels, 2018 classified biofuels into: First-generation (1G) — derived from sugarcane molasses, sugar juice, food grains; Second-generation (2G) — derived from agricultural and forestry residues (e.g., rice straw); and Third-generation (3G) — derived from algae and microorganisms. The 2022 amendment advanced the E20 target from 2030 to 2025-26, expanded the list of permissible feedstocks, and allowed export of biofuels (earlier restricted). Under the policy, 2G ethanol plants are being commissioned by IOCL and HPCL using paddy straw and other residues to also address the Delhi-NCR air-pollution problem of stubble burning. The story of maize signals a feedstock-shift inside the 1G basket rather than a leap to 2G.
Must Remember
- •Ethanol Supply Year (ESY) in India runs from November to October — 'ESY 2025-26' = Nov 2025 to Oct 2026.
- •First half (Nov 2025-Apr 2026) of ESY 2025-26: cumulative ethanol supply ~515 crore litres against contracted 1,059 crore litres, i.e., ~49%.
- •Maize (182 crore litres) has emerged as India's largest single ethanol feedstock for the first time.
- •Surplus rice / surplus food grains contributed approximately 125 crore litres; damaged food grains around 26 crore litres.
- •Sugarcane-based ethanol contributed ~182 crore litres — 62% of its contracted volume.
- •Sugarcane breakup: Sugarcane Juice (SCJ) 130 cr + B-heavy molasses (BHM) 45 cr + C-heavy molasses (CHM) 7 cr litres.
- •Monthly highlights: Dec 2025 ~102 cr litres; March 2026 ~95 cr litres; April 2026 ~92 cr litres of ethanol supplied.
- •India achieved 12% ethanol blending in 2022-23, 15% in 2023-24, hit E20 (20%) target on a national-average basis ahead of schedule in 2025; current target is E30 by 2030.
- •Ethanol Blended Petrol (EBP) Programme run by the Ministry of Petroleum and Natural Gas; OMCs procure ethanol via annual tenders.
- •Maize is less water-intensive than sugarcane and offers year-round availability — key reasons for its emergence as preferred feedstock.
Static GK
- •Major maize-producing states in India: Karnataka, Madhya Pradesh, Telangana, Bihar, Maharashtra, Tamil Nadu, Andhra Pradesh.
- •: India is the world's 4th-5th largest producer of maize globally.
- •Major sugarcane-producing states: Uttar Pradesh (largest), Maharashtra, Karnataka, Tamil Nadu, Bihar, Gujarat.
- •National Policy on Biofuels: 2018; amended in 2022 to advance the 20% blending target from 2030 to 2025-26.
- •Ethanol Blending in India: 1.6% (2013-14) → 5% (2019-20) → 10% (June 2022) → 12% (2022-23) → 15% (2023-24) → ~20% (2025-26).
- •Ethanol procurement price for sugarcane-juice route in 2024-25: around ₹65.61/litre (revised annually by Cabinet on CCEA approval).
- •OMCs in India: IOCL, BPCL, HPCL — they hold long-term contracts with sugar mills/distilleries.
- •: EBP Programme — launched in 2003 on a pilot basis in 9 states; pan-India rollout from 2006.
- •: Brazil — global leader in sugarcane ethanol; runs an E27 mandate.
- •: USA — global leader in maize (corn) ethanol; mandatory blending under the Renewable Fuel Standard (RFS).
Glossary
- Ethanol Supply Year (ESY)
- India's ethanol-procurement year, running from November to October, aligned with the sugar season. ESY 2025-26 = Nov 2025 to Oct 2026.
- Ethanol Blended Petrol (EBP) Programme
- Government of India programme run by the Ministry of Petroleum and Natural Gas through OMCs to blend ethanol with petrol; current achievement is E20 (20% by volume) on a national average.
- Sugarcane Juice (SCJ)
- Direct sugarcane juice diverted to ethanol production, bypassing the sugar-extraction stage; introduced as an approved feedstock from ESY 2018-19.
- B-heavy molasses (BHM)
- Intermediate molasses obtained after the second crystallisation stage of sugar production; richer in fermentable sugars and gives higher ethanol yield than C-heavy molasses.
- C-heavy molasses (CHM)
- Final by-product molasses left after maximum sugar extraction; traditional feedstock for the Indian ethanol industry.
- Damaged food grains (DFG)
- Food grains (typically rice/wheat) deemed unfit for human consumption that are released by the FCI for industrial use including ethanol production.
- 1G biofuels
- First-generation biofuels derived directly from food-crop feedstocks such as sugarcane, maize, rice and wheat.
- 2G biofuels
- Second-generation biofuels derived from agricultural and forestry residues such as paddy straw, bagasse, corn stover and bamboo.
- E20 / E30
- Blends of 20% / 30% ethanol with 80% / 70% petrol by volume; targets under India's National Biofuels Policy.
Timeline
- 1948First ethanol-petrol blending trial in India under the Power Alcohol Act, 1948 — programme later discontinued.
- 2003Modern Ethanol Blended Petrol (EBP) Programme launched in 9 states/UTs on a pilot basis.
- 2006EBP Programme extended to 20 states/UTs.
- 2009First National Policy on Biofuels announced.
- 2014Cabinet allows OMCs to fix ethanol price; blending grows from a low base.
- 2018National Policy on Biofuels, 2018 issued — categorises biofuels into 1G, 2G, 3G; expands feedstocks.
- 2018-19Sugarcane juice and B-heavy molasses approved as direct feedstocks for ethanol production.
- 2022 (May)Amendment to the National Biofuels Policy — advances E20 target to 2025-26 from 2030.
- 2022 (June)India achieves 10% ethanol blending — five months ahead of schedule.
- 2023-24Blending reaches 15% on a national average.
- 2025India reaches the E20 target on a national-average basis.
- 2025-26 (H1)Maize emerges as India's largest ethanol feedstock at ~182 crore litres.
- →ESY = Nov to Oct. ESY 2025-26 = Nov 2025 to Oct 2026.
- →Maize 182 + Sugarcane 182 (tie at headline level), but maize alone vs sugarcane is split SCJ 130 + BHM 45 + CHM 7.
- →EBP milestones: 5% (2019-20) → 10% (June 2022) → 12% (2022-23) → 15% (2023-24) → 20% (2025-26, target year).
- →Biofuels: 1G = food crops; 2G = agri-residue (e.g., paddy straw); 3G = algae.
- →National Biofuels Policy: 2018, amended 2022. Target: E20 by 2025-26 (advanced from 2030).
Exam Angles
ESY = Nov to Oct. ESY 2025-26 = Nov 2025 to Oct 2026.
India's ethanol story is now layered: progress on the E20 blending target, the feedstock-mix shift to grain (especially maize), and the trade-offs between food security, water security and energy security. The first-half ESY 2025-26 numbers — 515 crore litres of total supply and 182 crore litres of maize-based ethanol — make this a concrete policy testbed.
Mains Q · 250wIndia's shift from sugarcane to maize as the dominant ethanol feedstock has implications for food, water and energy security. Critically evaluate the trade-offs in light of the first-half ESY 2025-26 data. (250 words, 15 marks)
Flashcard
Q · For the first time, maize has emerged as India's largest ethanol feedstock — contributing 182 crore litres during the first half of Ethanol Supply Year (ESY) 2025-26; total ethanol supplied crossed 51tap to reveal
Connections & Comparisons
- ↔Links to PM-KUSUM and National Solar Mission as parallel pillars of energy transition.
- ↔Connects to Pradhan Mantri JI-VAN Yojana (2019) — viability-gap funding for 2G ethanol plants.
- ↔Tied to SATAT scheme (Sustainable Alternative Towards Affordable Transportation) — for compressed bio-gas (CBG).
- ↔Linked to National Bio-Energy Mission under MNRE.
- ↔Touches Food Corporation of India (FCI) — release of surplus rice and damaged food grains for ethanol use.
- ↔Ties into One District-One Product (ODOP) in maize-belt districts of Bihar, Karnataka, Madhya Pradesh.