Grain Ethanol’s Potential to Boost Farmers’ Income by Rs 35,000 Crore Highlighted in New Report

New Delhi:  India’s ethanol industry has emerged as a global success story in the clean energy sector, achieving nearly 20% ethanol blending in petrol ahead of the 2025 target. In a significant move to chart the next phase of this growth, a high-level roundtable was held today in New Delhi, bringing together senior government officials, ethanol producers, policymakers, and industry leaders to discuss the future of India’s Ethanol Blended Petrol (EBP) Programme.

The event marked the launch of a ‘Thought Leadership Report’, which serves as a strategic roadmap outlining ethanol’s critical role in advancing India’s threefold goal of energy security, rural development, and climate action. The report calls for robust policy support, stakeholder collaboration, and technology investment to unlock the next wave of ethanol growth—especially from grain-based sources such as maize and surplus rice.

India has made significant progress in its ethanol journey, achieving 10% blending ahead of schedule in 2022, and reaching 19.6% blending by January 2025. These efforts have already saved over ₹1.08 lakh crore in foreign exchange, substituted approximately 185 lakh metric tonnes of crude oil, and reduced 557 lakh metric tonnes of CO₂ emissions. The report also addresses concerns around food security, stating that India is a grain surplus country, with approximately 165 lakh metric tonnes of surplus grain available annually—more than enough to meet both food and ethanol production needs.

Focusing on grain-based ethanol, especially from maize and broken rice, the report highlights its potential as a sustainable and scalable solution. Maize, in particular, stands out as India’s least water-intensive crop with high ethanol conversion efficiency. Utilising surplus grains could generate over ₹35,000 crore in direct payments to farmers annually helping boost rural income and stem urban migration.

However, several challenges persist. Rising maize prices and competition from other sectors are affecting feedstock availability. Ethanol procurement prices have not kept pace with increasing input costs, and falling margins from by-products like Distiller’s Dried Grains with Solubles (DDGS) are impacting distillery viability.

The report outlines key recommendations to address these challenges:
– Scaling up maize cultivation across the country
– Introducing dynamic pricing mechanisms for grain-based ethanol
– Ensuring uninterrupted supply of damaged, broken, and surplus rice from the Food Corporation of India (FCI) until maize production stabilizes
– Promoting strong domestic markets for ethanol by-products like DDGS

The report launch was followed by a roundtable conference organised by ‘Primus Partners’ in collaboration with the Grain Ethanol Manufacturers Association (GEMA) and the Indian Federation of Green Energy (IFGE). Prominent speakers included Ambassador Kenneth H. da Nobrega (Brazilian Ambassador to India), Ashwini Srivastava (Joint Secretary, Department of Food and Public Distribution), Vivek Shukla (Deputy Director General, CACP, Ministry of Agriculture and Farmers Welfare), Vaibhav Dange (Green Fuel Expert), and Abhinav Singhal (Treasurer, GEMA).

Ashwini Srivastava emphasised the government’s commitment, stating, “We understand the challenges facing India’s grain ethanol industry. A roadmap is being planned to address issues like feedstock supply, ethanol purity (E100/E93/E85), and exploring Sustainable Aviation Fuel (SAF). We must work together to make this vision a reality.”

Abhinav Singhal added, “PM Modi’s Ethanol Blending Programme is a visionary step toward securing India’s energy future, uplifting rural economies, and reducing carbon emissions. The grain ethanol industry has become the backbone of India’s EBP and now needs the right policy direction to grow further.”

Sanjay Ganjoo, Director General of IFGE, concluded, “India’s ethanol success is rooted in bold policy decisions and strong industry cooperation. Grain ethanol can drive rural economic development, ensure year-round production, and support our clean energy transition. This roundtable is a vital step in aligning stakeholders toward a sustainable and impactful ethanol future.”

With ambitions extending to E100 fuel, flex-fuel vehicles, and Sustainable Aviation Fuel, the government and industry alike recognise the importance of coordinated efforts. The Thought Leadership Report and roundtable discussions underscore a shared commitment to building a cleaner, more self-reliant energy landscape that benefits both the environment and rural India.