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Maize as ethanol feedstock under EBP Photo: placeholder pending image-fill pass

Maize as ethanol feedstock under EBP

Since 2022-23 maize has emerged as the fastest-growing feedstock for India's Ethanol Blended Petrol (EBP) programme. After sugar diversion was capped in late-2023 to protect domestic sugar availability, oil-marketing companies (OMCs) raised maize-based ethanol procurement sharply; in ethanol-supply-year 2023-24 (Nov-Oct), maize and damaged-foodgrain (FCI rice) supplied roughly 35% of total ethanol delivered to OMCs.

Why it matters

Maize ethanol creates a second large industrial buyer of grain alongside poultry feed (Maize Poultry Feed Link India) and starch. It puts a price floor under maize that often exceeds the announced MSP (Msp Minimum Support Price / Msp Mechanism Cacp), shifting acreage in Bihar, Maharashtra, Karnataka, MP and Telangana into maize and away from rabi pulses and oilseeds. The 1G (first-generation) grain-based distillery capacity expanded from ~250 crore litres in 2020 to over 950 crore litres by 2024.

Key facts

  • Programme: Ethanol Blended Petrol (EBP), launched 2003; 20% blend target advanced to 2025-26
  • 2023-24 ESY blending achieved: ~13% (vs 1.5% in 2014)
  • Maize-ethanol price: notified at Rs 71.86/litre for ESY 2023-24
  • Maize required per kilolitre ethanol: ~2.5 tonnes
  • Annual maize demand for ethanol: projected 16-17 mt by 2025-26 (vs <1 mt in 2021)

Mechanism

OMCs (IOCL, BPCL, HPCL) float annual ethanol-procurement tenders. Distilleries quote prices for ethanol made from C-heavy molasses, B-heavy molasses, sugarcane juice, FCI rice or maize. From ESY 2023-24, sugarcane juice/syrup diversion was restricted, and maize price for ethanol was raised above the FCI-rice price to pull more starch grain into distilleries. Maize is ground, slurried, liquefied with α-amylase, saccharified with glucoamylase, fermented with Saccharomyces cerevisiae and distilled. Each tonne of maize gives ~380-400 litres of anhydrous ethanol and ~330 kg of dried distillers' grains with solubles (DDGS) — a high-protein animal-feed co-product.

Adoption context

States with rabi maize (Maize Bihar Rabi Cultivation) and post-monsoon irrigation have benefited most. New grain-based distilleries cluster in Bihar, MP, Maharashtra and Karnataka. Telangana and AP starch industries are competing with distilleries for the same grain, pulling mandi prices in Nizamabad, Karimnagar and Davangere above the kharif MSP in most months of 2023 and 2024.

Limitations

Food-vs-fuel concerns surfaced in 2023 when ethanol-grade maize bought at over Rs 22/kg pulled poultry-feed costs up. Aflatoxin and pesticide-residue thresholds for ethanol-grade maize are looser than for food, but distillers reject visibly damaged grain to protect enzyme yields. Long-term sustainability depends on yield growth — the 16-17 mt ethanol-maize demand is roughly 50% of present national maize production.

See also: Maize Crop Overview, Ethanol Blending Programme Ebp Sugarcane, Maize Bihar Rabi Cultivation, Maize Poultry Feed Link India, Msp Minimum Support Price.

Sources

  1. Roadmap on ethanol blending in India 2020-25. NITI Aayog. https://www.niti.gov.in/sites/default/files/2021-06/EthanolBlendingInIndia_compressed.pdf
  2. Ethanol supply year 2023-24 — feedstock allocation. Department of Food and Public Distribution, GoI. https://dfpd.gov.in/