Grain ethanol’s potential to boost farmers income by ₹35,000 crore: report launch and round-table discussion
- Sub Editor
- 3 days ago
- 5 min read
India’s ethanol industry has emerged as a standout success story in the global clean energy landscape, having achieved near 20% ethanol blending in petrol ahead of the 2025 target. In a significant step towards shaping the future of the sector, a high-level roundtable convened today brought together senior government officials, ethanol producers, policymakers, and industry leaders to deliberate on the next phase of India’s Ethanol Blended Petrol (EBP) Programme.
The roundtable marked the launch of the Thought Leadership Report, a strategic roadmap highlighting the critical role of ethanol in advancing India’s triple mandate of energy security, rural development, and climate action. The report reinforces the need for targeted policy support, stakeholder collaboration, and investment in technology to unlock the next level of growth in ethanol blending, especially from grain-based sources such as maize and surplus rice.
India’s Ethanol Milestones: A Platform for Progress
From achieving 10% ethanol blending ahead of schedule in 2022 to reaching a remarkable 19.6% blending in January 2025, India has demonstrated its capability to scale clean energy solutions rapidly. The ethanol blending initiative has already saved over Rs. 1.08 lakh crore in foreign exchange, substituted nearly 185 lakh metric tonnes of crude oil, and reduced 557 lakh metric tonnes of CO₂ emissions.
The report also addressed myths around India’s food security, showing it is a grain surplus country which can cater to the needs of food and ethanol production without causing scarcity. Every year, India has a surplus of around 165 lakh metric tonnes of grain that could be used for ethanol.
Opportunities and Challenges: Charting a Sustainable Path Forward
The Thought Leadership Report identifies grain-based ethanol, particularly from maize and surplus grains like broken rice, as a key lever for sustainable expansion. It emphasises the environmental and economic advantages of maize—India’s least water-intensive feedstock with strong ethanol conversion efficiency. The report projects that 165 Lakh Metric Tons of surplus grain could be utilised annually to generate over Rs. 35,000 crores in direct payments to farmers, reinforcing rural prosperity and arresting urban migration.
However, to maintain this momentum, the sector faces critical challenges
Feedstock availability and price pressures, especially with rising maize costs and inter-sector competition.
Ethanol procurement pricing, which has not kept pace with feedstock cost increases.
Falling by-product margins, such as Distiller’s Dried Grains with Solubles (DDGS), impacting distillery viability.
Strategic Policy Recommendations
The roundtable and report call for urgent, actionable reforms, including
Scaling up maize cultivation across the country.
Introducing dynamic pricing for grain ethanol to address feedstock cost increase.
Ensuring uninterrupted supply of damaged, broken, and surplus FCI rice until maize production ramps up.
Promoting strong domestic market linkages for ethanol by-products like DDGS.
The report release was followed by a roundtable conference organised by Primus Partners, in partnership with Grain Ethanol Manufacturers Association (GEMA) and IFGE (Indian Federation of Green Energy). Herein various industry experts and policy leaders—including His Excellency Ambassador Kenneth H. da Nobrega, Brazilian Ambassador to India, Ashwini Srivastava, Joint Secretary, Department of Food and Public Distribution, Vivek Shukla, Deputy Director General, Commission for Agricultural Costs and Prices (CACP), Ministry of Agriculture and Farmers Welfare Vaibhav Dange, Green Fuel Expert and Abhinav Singhal, Committee Head and Treasurer of Grain Ethanol Manufacturers Association—shared their perspectives on the path forward for grain ethanol. The panel discussed important issues, prospects, and workable solutions in order to support the industry and guarantee long-term success.
“We understand the current challenges of India’s grain ethanol story industry. There is a roadmap being planned; it will address multiple issues – feedstock availability and supply of broken and surplus rice from FCI, scope for E100/E93/E85, possibility of SAF (Sustainable Aviation Fuel), etc. We need to work together on this,” said Ashwini Srivastava, Joint Secretary, Department of Food and Public Distribution.
"PM Modiji initiative - “Ethanol Blending program (EBP)” is a great step forward by the GOI to ensure India’s future energy security, rural development, increasing farmer’s income manifold and reducing carbon footprint in the environment. In the last two years, Grain Ethanol Industry has grown & become the largest contributor to the EBP of India. Still, India being a Grain surplus country- the Grain Ethanol Industry requires timely support from Government of India with right policy initiatives & direction to grow and thrive in the future," said Abhinav Singal, Treasurer, Grain Ethanol Manufacturers Association (GEMA).
"India's ethanol success is a result of bold policy decisions and collaborative industry efforts. The grain-based ethanol industry, in particular, holds immense potential to drive rural economic development, enhance farmer incomes, and ensure year-round ethanol production. It must be actively promoted through supportive policies, assured feedstock supply, and fair pricing mechanisms. This roundtable is a step toward building consensus among stakeholders and crafting actionable strategies that will ensure long-term sustainability and growth of the ethanol sector. IFGE remains committed to enabling a robust and future-ready ethanol ecosystem that supports India’s clean energy transition and national energy security," said Sanjay Ganjoo, Director General, IFGE (Indian Federation of Green Energy).
The Way Forward
This roundtable and the release of the Thought Leadership Report underscore the government’s commitment to a structured, strategic, and inclusive ethanol roadmap—one that harmonises the interests of energy, environment, and rural India. Going forth, we eye E100, flex-fuel-vehicles, sustainable aviation fuel, etc. Given such ambitious goals, it is important the government and industry come together and shape a cleaner and prosperous future.
About Primus Partners
Primus Partners is a leading advisory firm dedicated to providing strategic insights across policy, technology, and economic sectors. Established by seasoned industry leaders with extensive experience in global organisations, the firm boasts a team of over 250 consultants and additional advisors. With a strong presence across multiple cities in India and Dubai, UAE, Primus Partners has successfully executed projects across Africa, Asia-Pacific, and the Americas.
About GEMA (Grain Ethanol Manufacturers Association)
GEMA is an association of All India Grain Ethanol Manufacturers, with 120+ member units who are owners of grain-based distilleries from across the nation who have come together to serve as a proactive business solution provider through continuous interaction with constituent members and various government agencies. It stands for harmonious relationship, quality, industrial development, Government-Society partnership and to enhance the quality, technology, and productivity of the distillery/ethanol industry on the whole.
About IFGE (Indian Federation of Green Energy)
The Indian Federation of Green Energy (IFGE), established in 2014, is a premier trade body championing the cause of green and renewable energy in India. As a unifying voice for the industry, IFGE serves as an umbrella organisation representing a wide spectrum of stakeholders across the renewable energy value chain. With a strong focus on cutting-edge and sustainable energy solutions, IFGE actively promotes sectors such as Compressed Biogas (CBG), Bioethanol, Biodiesel, Sustainable Aviation Fuel (SAF), Carbon Capture Utilisation and Storage (CCUS), Carbon/Green Credits, and Biomass (Pellets & Briquettes), among others. Our mission is to accelerate India’s transition to a low-carbon economy by strengthening energy security and driving sustainable development across all sectors. Through high-impact conferences, industry workshops, strategic collaborations, and robust policy advocacy, IFGE plays a vital role in shaping India’s green energy future.
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