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Informist, Monday, May 11, 2026

 

By Afra Abubacker

 

NEW DELHI – More ethanol produced from grain-based feedstocks was supplied to oil marketing companies in the first six months of the ethanol year 2025-26 (Nov-Oct). Yet, grain-based distilleries were lagging behind sugarcane-based units in fulfilment of the respective supply orders. The shortfall has occurred mainly because oil companies adjusted a part of the November supplies from grain-based distillers against the previous ethanol supply year.

 

As of Apr. 30, distilleries across the country had supplied 5.15 billion litres, or 49% of the volume contracted by oil marketing companies. Of this, 3.33 billion litres were produced from grain-based feedstocks and 1.82 billion litres came from sugarcane feedstocks, according to data from the All India Distillers' Association.

 

In terms of order fulfilment, however, distilleries using sugarcane-based feedstocks had supplied about 62% of the contracted 2.91 billion litres as of April. In contrast, grain-based distillers had fulfilled only 43% of the orders to supply 7.67 billion litres for the year ending October.

 

"We would have met 50% supply if half of November supplies had not been adjusted to last year," C.K Jain, president, Grain Ethanol Manufacturers Association, said. Of the 636 million litres of grain-based ethanol supplied in November, oil companies adjusted around 310 million litres to the previous year's supply to address shortfalls and operational issues. 

 

Oil companies also adjusted some 50 million litres of sugarcane-based ethanol in November to the previous year. Distilleries had supplied 178.4 million litres of sugarcane-based ethanol during November.

 

"As far as sugar-based distilleries are concerned, their supply is seasonal. We will see a slowdown in the second half of the ethanol supply year," Jain said. He added that sugarcane-based distilleries have ample availability of sugarcane juice and B-heavy molasses during the first half of the ethanol supply year as it coincides with the sugarcane crushing season.

 

Oil marketing companies have contracted distilleries to supply 10.59 billion litres in 2025-26. So far, only one tender has been floated for ethanol procurement, and distillers expect another round of tendering in the coming months. Oil marketing companies procure ethanol from distilleries to blend it with petrol. India has implemented 20% ethanol blending with petrol to reduce the country's dependence on crude oil imports, promote green mobility, and boost the rural economy.

 

Following is the feedstock-wise ethanol supply by distilleries as of April in the ethanol supply year 2025-26 (Nov-Oct), against supply orders issued by oil marketing companies, in million litres: 

 

Feedstock	Orders (2025-26)	Supply (till April)	Supply (%)
Damaged foodgrains	550	260	47.3
FCI surplus rice	2,330	1,250	53.6
Maize	4,790	1,820	38
Total grains	7,670	3,330	43.4
Sugarcane juice	1,640	1,300	79.3
B-Heavy molasses	1,130	450	39.8
C-Heavy molasses	140	70	50
Total sugarcane	2,910	1,820	62.5
Grand total	10,590	5,150	48.6

 

 

End

 

Edited by Rajeev Pai

 

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