🌱 Raw Material vs. Grain-Based Ethanol in India – Policy, Production & Sustainable Engineering by UNIVERSAL FORCES INDUSTRIES PVT.LTD.

India’s mission to reach 20% ethanol blending by 2025‑26 is accelerating with policy reforms, infrastructure expansion, and diversified raw materials.

📊 Government Targets & Current Scenario

• Ethanol blending rose from 1.53% in 2014 to around 15% in 2024, and 18.4% by March 2025
• India has achieved approximately 19% blending in early 2025 and is on track for 20% by end-2025
• National ethanol production capacity grew from ~518 crore litres (2017–18) to over 1,623 crore litres by September 2024, with grain-based capacity now around 40% of total.

🌾 Molasses vs. Grain-Based Ethanol: Production Breakdown

Feedstock	Approx. Production & Share (2023–24)	Advantages	Challenges
Molasses / Cane Juice	~55% of ethanol (~875 cr L capacity)	Lower-cost, uses sugar industry byproducts, mature value chain	Seasonal availability, high effluent burden
Grain-Based (Maize, Rice)	~45% (~700 cr L, maize ~400 cr L, rice balance)	Year-round feedstock, higher ethanol yield, DDGS byproduct	Price volatility, food-security concerns, logistics issues

🧾 Key Government Policies Driving Ethanol Growth

• National Biofuel Policy (2018, amended 2022) pushed up the ethanol blending target from 2030 to 2025‑26
• Feedstock flexibility allows ethanol from molasses, cane juice, surplus/damaged grains, and biomass
• Financial support includes Interest Subvention Scheme (EISS) and assured Long-Term Offtake Agreements (LTOAs) with OMCs
• Tax incentives: GST reduced to 5%, ethanol procurement pricing guaranteed (e.g., maize-based ₹9.72/L, rice-based ₹8.46/L, molasses ₹6.87/L)
• Policy updates allow cane-juice ethanol, use of B-heavy molasses, and offerings of FCI rice for ethanol
• State-level reforms: Maharashtra now permits dual-feed distilleries using grains and molasses year-round

🏭 Universal Forces Industries Pvt. Ltd.: Enabling Sustainable Ethanol Plants

At the core of India’s ethanol production growth are infrastructure and technology enablers like Universal Forces Industries Pvt. Ltd., offering:

• 🔧 Turnkey solutions for both molasses- and grain-based ethanol plants.
• ⚙️ Systems for fermentation, distillation, ZLD, biogas, and co-generation.
• 🐄 DDGS recovery units for grain-based plants to add value.
• 🌿 Compliance machinery for CPCB/SPCB norms, wastewater treatment, and automation.
• 🚀 Support for dual-feed operations aligning with government permissions.

🔭 Why This Comparison Matters

India’s fuel ethanol demand in 2025 is projected at ~10 billion litres, requiring production capacity of ~1,700 cr L—currently at ~1,600 cr L, with scope for both molasses and grain-based expansion Drishti IASThe Times of India. Grain-based capacity must rise further to avoid shortages and ensure food security, while molasses-based plants remain relevant but limited by supply seasonality.

✅ Final Takeaway

India’s ethanol ecosystem is evolving rapidly under supportive policy frameworks and feedstock diversification. Both molasses-based and grain-based ethanol production have defined roles—complementing each other in securing stable supply. And engineering firms like Universal Forces Industries Pvt. Ltd. are critical partners in turning policy into action—with compliant, efficient and scalable distillery solutions.