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Informist, Wednesday, Jul. 8, 2026

 

By Afra Abubacker

 

MUMBAI – Distilleries have supplied 7.17 billion litres of ethanol to oil marketing companies in Nov-Jun, or 68% of the 10.5 billion litres ordered for the ethanol supply year ending October, according to data from the All India Distillers' Association.

 

Most ethanol blended into petrol continues to be produced from grain-based feedstocks, followed by sugarcane feedstocks. As of the end of June, 4.80 billion litres, or 67% of the ethanol supplied to oil companies, was produced from grain-based feedstocks while 2.38 billion litres, or 33%, was made from sugarcane-based feedstocks. However, sugarcane-based ethanol continued to record a higher fulfilment rate.

 

Distilleries supplied 2.38 billion litres, or 82%, of nearly 2.89 billion litres ordered from sugarcane-based feedstocks. In comparison, grain-based ethanol supplied was only 63%, or 4.80 billion litres, against the order of 7.6 billion litres. Ethanol supplies to oil marketing companies are going on at a "healthy" pace to maintain the target of 20% ethanol blending in petrol, agriculture markets expert G.K. Sood said.

 

According to industry participants, sugar-based ethanol supplies are typically stronger in the first half of the ethanol supply year as it coincides with the sugarcane crushing season starting October. During this period, sugarcane-based distilleries have ample availability of sugarcane juice and B-heavy molasses to produce ethanol.

 

Meanwhile, maize remains the largest feedstock used for ethanol production, with the supply of 2.58 billion litres so far. The third largest feedstock is surplus rice bought from the Food Corp. of India, with 1.77 billion litres of ethanol made from rice having been supplied so far. The diversified feedstock basket "reduces dependence on any single crop, enhances year-round feedstock availability, and strengthens India's energy security," Vijendra Singh, president, All India Distillers' Association, said in a note.

 

Bharat Petroleum Corp. Ltd., on behalf of all state-owned oil companies, has so far floated only one tender to procure 10.5 billion litres of ethanol. Industry officials said additional tenders are expected only after the legal dispute between a Karnataka-based distillery and oil marketing companies is resolved. 

 

VINP Distilleries and Sugars Pvt. Ltd., a dedicated ethanol plant, has filed a petition against the oil marketing companies, accusing them of violations of terms under the long-term offtake agreement. "The next Supreme Court hearing is scheduled on Jul. 16," an industry official said, adding that the market expects oil companies to float another tender for 600-800 million litres of ethanol.

 

Following is the feedstock-wise ethanol supply by distilleries as of Jun. 30 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 Jun. 30)	Supply (%)
Sugarcane juice	1,658.5	1,440	87
B-Heavy molasses	1,104.9	820	74
C-Heavy molasses	121.7	120	99
Total - Sugarcane based	2,885.1	2,380	82
Damaged food grain	476	450	95
Surplus FCI rice	2,332.5	1,770	76
Maize	4,789	2,580	54
Total - Grain-based	7,597.5	4,800	63
Grand Total	10,482.6	7,170	68

 

End

 

Edited by Rajeev Pai

 

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