More Stories

Informist, Monday, Feb. 23, 2026

MUMBAI – The US Department of Agriculture's Foreign Agriculture Service has found significant opportunities for US exporters in India's biofuel market. As India seeks to bridge supply gap and adopt advanced production technologies, US suppliers can contribute through technology transfer, joint ventures, and supply agreements, according to a report released by the body.

"India's biofuels sector is advancing rapidly with strong government support. However, it faces challenges including feedstock variability, environmental concerns, and policy shifts that have caused uneven capacity utilization and resource competition. The expansion of sugar and grain-based ethanol production creates significant opportunities for US stakeholders, particularly in exporting industrial ethanol supplies and advanced biofuel technologies," the report said.

Another avenue could be the distillers dried grains with solubles (DDGS) market. "...as domestic demand for animal feed rises--driven by expanding dairy, poultry, and aquaculture sectors--India may face supply gaps, particularly when corn diverts from feed to fuel. This can leave opportunities for US exporters of DDGS to supplement India's feed market during periods of tight domestic supply or price volatility," said the report titled India Biofuels Market - Opportunities and Challenges in a Changing Energy and Agricultural Landscape.

The evolving dynamics of government procurement, feedstock allocation, and co-product utilisation will continue to shape both India's domestic agricultural markets and international trade flows, creating ongoing opportunities for US engagement, it added.

Moreover, to support sugarcane farmers and meet biofuel targets, the government plans to establish 150 new sugar mills by 2047, the report noted, and said this expansion is expected to increase demand for sugarcane and provide farmers with more stable and potentially higher incomes. The expansion is also expected to increase production of molasses and bagasse, supporting ethanol production and creating opportunities for US exporters of enzymes, yeast, and advanced processing technologies, the report said.

With sugarcane and corn cultivation expanding for fuel ethanol, farmers are expected to continue a land shift away from other crops like soybeans, cotton, and pulses. This could tighten domestic food supplies and increase India's reliance on imports.

However, India's energy ambitions are not just confined to road transport. The government has established mandatory Sustainable Aviation Fuel blending requirements for international flights. Private sector engagement here is accelerating. India is also advancing sustainable marine fuels. "While the government has not yet established specific blending mandates, priority initiatives emphasise deploying alternative fuels including green hydrogen, ammonia, methanol, and biofuels," the report said.  End

Reported by  Abhijit Doshi

Edited by Akul Nishant Akhoury

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2026. All rights reserved.