Maize, broken grain may power ethanol shift as govt targets higher petrol blending

The central government aims to achieve 20 percent ethanol blending with petrol by October 2025.

The government is looking at prioritising ethanol production from maize and broken grain, instead of sugarcane, with an inter-ministerial committee working on formulating a roadmap to increase ethanol blending beyond 20 percent, a senior government official told Moneycontrol.

Amid the food versus fuel debate, the committee is working on ways to ensure food security while also ramping up ethanol production in the country, the official said.

“The committee is looking at striking a balance between different sources such as maize, broken rice, corn, sugarcane and molasses for ethanol production to ensure food security,” the official added.

The committee would come out with a draft report to chalk out plans to increase ethanol blending beyond 20 percent, which would be sent for the Union Cabinet's approval.

The committee consists of officials from the Ministry of Petroleum and Natural Gas, Ministry of Road Transport and Highways, Ministry of Agriculture and Farmers’ Welfare, and Department of Food and Public Distribution.

The central government aims to achieve 20 percent ethanol blending with petrol by October 2025. Oil ministry data shows that India achieved ethanol blending of 19.7 percent in petrol during April.

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Grain diversion for ethanol production

Meanwhile, the government’s efforts to increase ethanol blending in petrol have sparked a debate over food security in the country.

The government has been pushing for diversification of ethanol production and encouraging maize- and rice-based ethanol, moving away from sugarcane ethanol. As a result of the push, India in September 2024 became a net importer of maize for the first time in decades. India has been primarily a maize exporter.

The government had also restricted sugar mills from using cane juice to produce ethanol starting from November 2024, to shield the country from a sugar shortage. The order was, however, reversed due to opposition from the industry.

According to official data, India’s ethanol production capacity reached 1,685 crore litres in the ethanol supply year (ESY) 2023-24. Of this, grain-based ethanol quantity was 744 crore litres, while sugarcane-based ethanol was 941 crore litres. The ethanol supply year runs from November to October.