Explainer: Ethanol in India--from sugarcane to maize

India Oct 13, 2025

India's ethanol journey has changed a lot in the past few years. What started with sugarcane molasses is now mostly about grains—especially maize.
Since 2018-19, government incentives and, in recent years, higher prices for maize encouraged more grain-based ethanol production.
By 2025, over 65% of India's ethanol comes from grains, with maize alone outpacing all sugarcane sources.

Reaching 20% blending target means more maize in fuel

India hit a 19.1% ethanol blending rate in early 2025—almost reaching its big 20% target way ahead of schedule.
But there's a catch: using so much maize for fuel means less is available for food and animal feed, which could be tricky as demand rises.
Figuring out how to keep this growth sustainable is a challenge policymakers are still working on.