Maize surpasses rice as India's top ethanol feedstock, data shows
NEW DELHI: The use of maize for ethanol production in India has overtaken that of rice and damaged food grains, according to data from the Ministry of Food and Public Distribution presented to the Lok Sabha on Wednesday. The shift marks a significant change in the country's ethanol blending programme, with maize now the leading grain-based feedstock.
As of June 2025, distilleries under the government's Ethanol Blended Petrol (EBP) programme had used approximately 68 lakh tonnes of maize, compared to 54 lakh tonnes of surplus rice and damaged food grains (including broken rice) supplied by the Food Corporation of India (FCI). The current ethanol supply year (ESY) runs from October to September, with two months still remaining.
Maize was not used for ethanol production at all in ESY 2020-21 and 2021-22. Its usage began modestly in ESY 2022-23 with 8.3 lakh tonnes, then soared to 75.4 lakh tonnes in ESY 2023-24, and reached an all-time high of 131 lakh tonnes in ESY 2024-25. In comparison, FCI-supplied rice and broken rice for ethanol production stood at just over 50 lakh tonnes in ESY 2024-25.
The ministry stated that diversifying feedstock sources—including sugarcane juice, B-heavy and C-heavy molasses, maize, damaged food grains, and surplus FCI rice—has reduced dependence on any single crop and supported agricultural diversification. The inclusion of maize has provided farmers with assured markets and better prices.
FCI sells surplus rice for ethanol production only after meeting requirements under the National Food Security Act and other welfare schemes, while maintaining a buffer stock. Notably, FCI had stopped supplying rice for ethanol during ESY 2022-23.
According to the sugar industry, for ESY 2025–26, only 2,890 million litres (28%) of ethanol will come from sugar-based feedstocks, while 7,610 million litres (72%) will come from grain-based sources. Of that, maize accounts for 4,780 million litres (45%) and rice for 2,830 million litres (22%).
On Tuesday, the government informed the Rajya Sabha that FCI had sold rice to ethanol distilleries at Rs 2,250–2,320 per quintal during June 2025–June 2026—about 40% below its acquisition cost of Rs 3,720–3,889 per quintal, which includes minimum support price and storage costs.
