India's ethanol supplies cross 800-crore-litre mark, grain-based share rises to 76 pc in July: AIDA

A total of 93 crore litres of ethanol was supplied in July, taking cumulative supplies beyond the 800-crore-litre milestone. Grain-based feedstocks contributed 71 crore litres during the month, compared with 75 crore litres out of 103 crore litres in June.

The share of grain-based ethanol consequently increased to around 76 per cent in July from approximately 73 per cent in June, even as overall monthly supplies moderated.

Maize and surplus Food Corporation of India (FCI) grains emerged as the key contributors within the grain-based segment, accounting for 30 crore litres each in July. Together, they contributed nearly 85 per cent of grain-based ethanol supplies during the month.

Damaged food grains contributed another 11 crore litres, highlighting the growing role of multiple grain streams in supporting India's ethanol supply chain.

Sugarcane-based feedstocks, meanwhile, contributed 22 crore litres in July, down from 28 crore litres in June. Their share of total monthly supplies declined to around 24 per cent in July from 27 per cent in June.

Within sugarcane-based supplies, B-Heavy Molasses accounted for 17 crore litres, while Sugarcane Juice contributed 4 crore litres and C-Heavy Molasses contributed 1 crore litre.

Bharati Balaji, Deputy Director General, All India Distillers' Association, said crossing the 800-crore-litre mark was an important milestone for India's ethanol programme and reflected the scale achieved by the domestic industry.

"What is equally significant is the movement in the monthly supply mix. Grain-based ethanol increased its share from around 73 per cent in June to 76 per cent in July, with maize and surplus FCI grains each contributing 30 crore litres," she said.

"The supply side has demonstrated its ability to respond through multiple feedstocks and a growing production base. The next step is to create sufficient demand for this capacity," Balaji added.

She said higher ethanol blends, Flex-Fuel Vehicles and wider applications of ethanol could help unlock the potential of the ecosystem developed over the past decade.

"The industry has created a much stronger production base, and the priority now should be to ensure that this capacity is utilised efficiently. A clear and predictable framework for expanding ethanol applications will be critical to sustaining investments, supporting the agricultural value chain and advancing India's transition towards cleaner domestic fuels," Balaji said.

According to AIDA, creating additional avenues for ethanol utilisation will be important as domestic production capacity expands and the country advances its clean mobility and renewable fuel objectives. (ANI)