India's ethanol capacity reaches 2,000 cr liters as demand lags
Business
India has ramped up its ethanol capacity to 2,000 crore liters as of May 2026, with plans to add another 400 crore liters by FY2027.
But here's the catch: actual demand is much lower, with only about 1,100 crore liters needed for fuel blending (E20) and another 300 to 350 crore liters for other uses.
CareEdge finds only 60% ethanol used
A CareEdge report says only 60% of all this ethanol is actually being used.
The main reasons: limited distribution infrastructure and big regional mismatches (Maharashtra has a surplus while Tamil Nadu faces a shortage).
Looking ahead, though, demand could pick up as more flex-fuel vehicles hit Indian roads and demand under the EBP program is projected to rise by ESY 2029-30.