Grain Takes the Lead in India’s Ethanol Revolution
India’s ethanol production, once centered around supporting sugarcane farmers, is increasingly driven by grain-based manufacturing. The ethanol blending programme, initially designed to stabilize sugar surpluses and aid cane growers, has unexpectedly shifted focus. Today, grain-based ethanol—derived from maize, broken rice, and surplus grains—is playing a dominant role in meeting the government’s ambitious blending targets. This shift has attracted over ₹40,000 crore in private investments, largely benefitting standalone grain-based ethanol producers. The government’s flexible feedstock policy and rising fuel blending mandates have opened lucrative opportunities beyond the sugar sector. Experts say the shift also helps reduce regional imbalances, as sugarcane is concentrated in specific states, while grain ethanol production can expand across India. However, this raises concerns about food security and grain diversion. Still, the grain-based model is emerging as a cornerstone of India’s clean energy transition and rural industrialisation strategy.
