The use of maize and rice as feedstock for ethanol production has increased substantially in the past six years, with maize surpassing rice in the last couple of years.
In the ethanol supply year (ESY) 2024-25 (October-September), 13.11 million tonne (MT) of maize was used for ethanol production against close to 5 MT of broken and Food Corporation of India’s surplus rice used in biofuel manufacturing.
In the ESY 2025-26, 6.79 MT of maize has been used for ethanol against 5.4 MT of rice so far. In FY 2021-22, maize was not used as feedstock for ethanol.
Grain Feedstocks
“Diversification of feedstock base for ethanol production such as sugarcane juice, B-heavy molasses, C-heavy molasses, maize, damaged food grains, surplus FCI rice has reduced dependence on any single feedstock or crop and has supported agricultural diversification,” the Department of Food and Public Distribution stated in Parliament on Wednesday.
Inclusion of maize as a feedstock for ethanol production has helped in providing assured markets to farmers and ensured better prices, it said.
The Food Corporation of India diverts surplus rice for ethanol production after meeting the requirements under the National Food Security Act, other welfare schemes and maintaining a buffer, the department stated. FCI stopped supplying rice for ethanol production during ESY 2022-23.
According to the sugar industry, only 2890 million litres of ethanol, just 28% of the total requirement, have been allocated from sugar-based feedstocks for the 2025–26 ESY, compared to 72% or 7610 million litres from grain-based sources – 4780 million litres from maize (45%), and 2830 million litres from rice (22%).
“Maize as India’s largest feedstock for ethanol reflects the success of diversifying beyond traditional sugar-based feedstock. It results in sustainable feedstock availability and improved agricultural productivity,” C K Jain, President, Grain Ethanol Manufacturers Association, told FE.
As per the third advance estimates of foodgrain production for 2025-26, maize production is estimated at 55 million tonnes, which is sufficient to cater to the demand for ethanol production, poultry, cattle feed and other purposes, the government stated.
Govt sells rice to ethanol distilleries below cost
The Food Corporation of India (FCI) sold rice to ethanol distilleries at Rs 2,250-2,320/quintal during June 2025 – June 2026, about 40% below its acquisition cost of Rs 3,720-3,889/quintal, the government stated in Parliament.
Under the Open Market Sale Scheme, the price for ethanol distilleries was Rs 2,250/quintal during June to October 2025 and Rs 2,320/quintal during November 2025 – October 2026. It has been set at Rs 2,390/quintal for November 2026 to June 2027 against the FCI’s acquisition cost of Rs 4013/quintal for FY27
FCI’s average acquisition cost including minimum support price (MSP), storage, and carrying cost was Rs 3,719.72/quintal in 2024-25 and Rs 3,889.46/quintal as per the FY26 revised estimate.
