Ethanol blending nears 20%; Maize dominates ethanol production
India’s ethanol blending reached 19.98% by January 2026, with grain-based sources dominating 72% of allocations, led by maize. However, sugarcane-based ethanol shows stronger offtake, contributing 37% of actual supplies despite lower allocation. Around 11.78 lakh tonnes of sugar have been diverted to ethanol to balance inventories and support mills.
The overall ethanol blending as on 31st January 2026 is at 19.98%, with grain-based distilleries dominating ethanol production. Against a total ethanol requirement of 1,050 crore litres, allocations stand at 1,048.26 crore litres,
Grain-based feedstocks
Total grain-based allocation: 759.75 crore litres (72% of total allocations)
Total grain-based supply: 151.17 crore litres (63% of total supplies)
Breakdown of Grain-Based Sources
Maize
Allocation: 478.90 crore litres (46%)
Supply: 86.45 crore litres (36%)
SFG (FCI Rice)
Allocation: 233.25 crore litres (22%)
Supply: 52.06 crore litres (22%)
DFG
Allocation: 47.60 crore litres (5%)
Supply: 12.66 crore litres (5%)
Maize continues to lead the spot of being the single largest contributor to ethanol production from the grain-based feedstock basket, both in allocation and supply terms.
Sugarcane-derived ethanol, though accounting for 28% of allocations, contributes a relatively higher 37% share in actual supplies, reflecting faster off-take from cane-based units.
Molasses-based feedstocks
Total sugarcane-based allocation: 288.51 crore litres (28%)
Total sugarcane-based supply: 87.86 crore litres (37%)
Sugarcane Feedstock Breakdown
Cane Juice (SCJ)
Allocation: 165.85 crore litres (16%)
Supply: 71.00 crore litres (30%)
B-Heavy Molasses
Allocation: 110.49 crore litres (11%)
Supply: 14.07 crore litres (6%)
C-Heavy Molasses
Allocation: 12.17 crore litres (1%)
Supply: 2.79 crore litres (1%)
Sugar mills have diverted around 11.78 lakh tons of sugar towards ethanol production to maintain inventory balance:
Sugar diversion from SCJ: 10.65 lakh tons
Sugar diversion from B-Heavy Molasses: 1.13 lakh tons
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Source : Chinimandi
