India's ethanol blending programme has crossed a significant supply milestone, with cumulative ethanol receipts touching 987 crore litres by the end of September 2026, according to the latest data released by the All India Distillers' Association (AIDA) on 15 October 2026. The figure, recorded under Ethanol Supply Year (ESY) 2025-26, reflects an overall supply fulfilment rate of 82.5 per cent against a total contracted allocation of 1,197 crore litres.

Grain-Based Feedstocks Lead the Way

Grain-based feedstocks emerged as the dominant contributor, accounting for 705 crore litres — or 71.4 per cent — of total cumulative receipts. Maize was the single largest grain feedstock, supplying 413 crore litres, which represents over 41 per cent of all ethanol received by oil marketing companies this supply year. Surplus FCI rice contributed 222 crore litres, while damaged foodgrains added a further 70 crore litres.

According to AIDA, the strong reliance on multiple grain streams reflects the domestic ethanol industry's expanding processing capacity and its demonstrated ability to absorb diverse agricultural feedstocks without compromising food security.

Sugar-Based Feedstocks Deliver Near-Perfect Fulfilment

Sugar-based feedstocks — comprising sugarcane juice and heavy molasses — supplied 282 crore litres out of a contracted allocation of 289 crore litres, achieving a fulfilment rate of 97.6 per cent. The near-complete delivery across both B Heavy and C Heavy Molasses categories points to the operational resilience of sugar mills in honouring contracted volumes.

This segment's strong performance is particularly notable given that sugar-based supplies have historically been more vulnerable to seasonal cane availability fluctuations.

What AIDA Said

Bharati Balaji, Deputy Director General of AIDA, said: 'The September-end data clearly illustrates the maturing landscape of India's ethanol ecosystem. Crossing the 980-crore litre mark is a major milestone, with grain-based sources — led by maize at 413 crore litres — contributing over 71 per cent of total supplies. Simultaneously, sugar-based feedstocks have shown remarkable delivery efficiency, fulfilling nearly 98 per cent of their allocated quantities.'

Balaji also underlined the importance of policy consistency and demand diversification, adding: 'Building a robust, multi-feedstock supply network is vital for long-term energy security. As production and supply infrastructure scale up, maintaining policy continuity and expanding utilisation avenues — such as Flex-Fuel Vehicles (FFVs), Sustainable Aviation Fuel (SAF), and Compressed Bio-Gas (CBG) — will be essential to sustain investment momentum and empower agricultural value chains across India.'

Why This Matters for India's Energy and Farm Sectors

India's ethanol blending programme is a cornerstone of the government's strategy to reduce fossil fuel dependence, cut import bills, and provide a stable demand channel for agricultural produce. The pivot toward grain-based feedstocks — particularly maize — has opened new income avenues for non-sugarcane farmers, broadening the programme's rural economic footprint.

This comes amid growing policy interest in scaling ethanol use beyond petrol blending, with SAF and CBG flagged as the next frontiers. With ESY 2025-26 still running, the industry will be watching whether the remaining 210 crore litres of contracted allocation can be fulfilled before the supply year closes.