Grain Ethanol’s Potential to Boost Farmers’ Income by ₹35,000 Crore: Report Launch and Roundtable Discussion
11 April 2025, New Delhi: India’s ethanol industry has emerged as a global success story in the clean energy transition, achieving nearly 20% ethanol blending in petrol—well ahead of its 2025 target. In a significant move to shape the sector’s future, a high-level roundtable was held today, bringing together senior government officials, ethanol producers, policymakers, and industry leaders. The event focused on charting the next phase of India’s Ethanol Blended Petrol (EBP) Programme.
The occasion marked the launch of a comprehensive Thought Leadership Report, which outlines a strategic roadmap for ethanol’s growing role in fulfilling India’s triple mandate of energy security, rural development, and climate action. The report emphasizes the urgent need for focused policy interventions, greater collaboration among stakeholders, and increased investment in technology to drive the next wave of ethanol blending—particularly from grain-based sources such as maize and surplus rice.
India has made rapid progress in ethanol blending, having reached 10% ahead of schedule in 2022 and touching an impressive 19.6% in January 2025. This initiative has already delivered significant benefits, including over ₹1.08 lakh crore in foreign exchange savings, substitution of nearly 185 lakh metric tonnes of crude oil, and a reduction of 557 lakh metric tonnes in CO₂ emissions. The report also challenges concerns around food security, pointing out that India consistently produces a surplus of approximately 165 lakh metric tonnes of grain annually, which can be used for ethanol without affecting food availability.
Grain-based ethanol, especially from maize and broken rice, has been identified as a major opportunity for sustainable expansion. Maize, which requires less water than other crops and offers high ethanol conversion efficiency, is especially promising. According to the report, utilizing 165 lakh metric tonnes of surplus grain each year could generate over ₹35,000 crore in direct payments to farmers, thereby strengthening rural economies and helping curb migration to urban areas.
However, several challenges could hinder this momentum. Rising maize prices, competition for feedstock among sectors, stagnant ethanol procurement pricing, and declining by-product margins—such as those from Distiller’s Dried Grains with Solubles (DDGS)—pose significant risks to the viability of distilleries. The report underscores the importance of dynamic pricing mechanisms for ethanol, scaling up maize cultivation, ensuring steady supply of damaged, broken, and surplus rice from the Food Corporation of India (FCI), and developing strong domestic market linkages for ethanol by-products to maintain growth and sectoral health.
The roundtable was organised by Primus Partners in collaboration with the Grain Ethanol Manufacturers Association (GEMA) and the Indian Federation of Green Energy (IFGE). Distinguished participants included His Excellency Ambassador Kenneth H. da Nobrega, Brazilian Ambassador to India; Ashwini Srivastava, Joint Secretary, Department of Food and Public Distribution; Vivek Shukla, Deputy Director General, Commission for Agricultural Costs and Prices (CACP), Ministry of Agriculture and Farmers Welfare; Vaibhav Dange, Green Fuel Expert; and Abhinav Singhal, Committee Head and Treasurer of GEMA. These experts shared key insights on the current challenges, opportunities, and the path forward for strengthening the grain ethanol sector.
Commenting on the industry’s direction, Ashwini Srivastava stated that a comprehensive roadmap is being developed to address various challenges such as feedstock availability, the supply of surplus and broken rice from FCI, exploration of higher ethanol blends like E100, E93, E85, and even possibilities like Sustainable Aviation Fuel (SAF). He stressed the importance of collective efforts to overcome these issues.
Abhinav Singhal highlighted that the Ethanol Blending Programme initiated by Prime Minister Narendra Modi is a landmark move to secure India’s energy future, improve farmer incomes, and reduce the nation’s carbon footprint. He noted that in the past two years, the grain ethanol industry has seen significant growth, becoming the largest contributor to the EBP. However, as India continues to be a grain-surplus nation, timely and well-calibrated policy support from the government will be crucial for the industry’s continued growth and sustainability.
Sanjay Ganjoo, Director General of IFGE, echoed these sentiments, stating that India’s ethanol success has been made possible through bold policymaking and industry collaboration. He emphasized the grain ethanol segment’s enormous potential in driving rural economic upliftment, enhancing farmer incomes, and ensuring uninterrupted year-round ethanol production. Ganjoo stressed the need for assured feedstock supply, fair pricing models, and targeted policy backing to fully realize this potential. He reaffirmed IFGE’s commitment to building a resilient ethanol ecosystem aligned with India’s clean energy goals and national energy security.
The roundtable and the release of the Thought Leadership Report reaffirm the government’s commitment to a strategic, inclusive, and future-ready ethanol roadmap. Looking ahead, the focus will be on advancing towards 100% ethanol (E100), promoting flex-fuel vehicles, and exploring options such as sustainable aviation fuel. To achieve these ambitious goals, it is essential for the government and industry to come together, working in unison to build a cleaner, more prosperous, and energy-secure India.
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