India’s distillers have asked the government to raise maize ethanol prices to Rs 75 per litre, saying a recent procurement rate cut and higher maize costs threaten suppliers’ profitability. The All India Distillers’ Association (AIDA) made the request on October 26, 2026.

Key Takeaways

  • The tender rate for maize-based ethanol fell to Rs 68.86 per litre from Rs 71.86.
  • AIDA also wants a roadmap for increasing ethanol blending beyond the current 20% and higher prices for FCI rice-based ethanol.

Maize ethanol prices and the new tender

On October 16, Bharat Petroleum Corporation Ltd (BPCL) issued a tender on behalf of oil marketing companies seeking bids for around 11 billion litres of ethanol for the supply year beginning in November. The volume is intended to meet the requirement for blending 20% ethanol into petrol.

The tender reduced the incentive for maize-based ethanol, lowering its procurement price to Rs 68.86 per litre from Rs 71.86. AIDA President Vijendra Singh said the government should revise the price and incentive structure to keep production economically viable and sustain investment in grain-based distilleries.

Singh said maize prices had risen to Rs 27 per kilogram from Rs 17–18 per kilogram a year earlier. Manufacturers would not be able to make a profit at current ethanol prices, he said, citing other costs including interest payments.

Blending roadmap and rice-based ethanol

Singh said ethanol plants were not operating at full capacity. India’s total installed capacity is about 20 billion litres, including 13 billion litres at grain-based ethanol plants, he said.

AIDA called for the government to gradually increase the blending percentage beyond 20% and promote flex-fuel vehicles. It also sought a higher procurement price for FCI rice-based ethanol, saying the current rate of Rs 60.32 per litre leaves distillers with very limited margins and makes production unviable in some cases.

The association has argued that policy support and remunerative pricing should be available to all viable feedstocks rather than disproportionately favouring one.

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