Ethanol crosses 800 crore litres, but demand lags supply

The Story in Brief

Cumulative ethanol supplies crossed 800 crore litres in Ethanol Supply Year (ESY) 2025-26, the All India Distillers' Association (AIDA) said. Monthly supplies dipped to 93 crore litres in July from 103 crore litres in June. Grain-based ethanol now accounts for 76% of the mix, with maize and surplus FCI grains contributing 30 crore litres each. Sugarcane-based supplies fell to 22 crore litres, or 24% of the total. AIDA said the production base has expanded and demand must now keep pace, pointing to higher blending, flex-fuel vehicles, and wider ethanol uses as possible solutions.

Separately, reports say the Centre is considering restricting sugarcane use for ethanol from October, amid record sugar prices and fears of shortage before the festival season. Around 3 million tonnes of sugar was diverted to ethanol in the current season. Under the proposed plan, mills would be encouraged to produce ethanol only from C-heavy molasses, not from sugarcane juice or B-heavy molasses, to free up sugar. To make up the gap, the government could rely more on ethanol from corn and rice.