Ethanol market Size in India | Industry Trends, Supply Dynamics & Forecast 2025

What is the India Ethanol Market Size?

The growth of this industry is expected to be proliferated by growing government emphasis on biofuel adoption, particularly the E20 fuel blend target and increased ethanol demand from industries such as automotive, chemical, and beverages.

Growth Factors of the India Ethanol Market

• The government is putting efforts towards ethanol blending programs under the National Bio-Energy Mission.
• The interest from the automotive sector as ethanol-blended petrol reduces carbon emissions and fuel costs has been arising.
• Modification of feedstock beyond sugarcane to grains like maize and broken rice.
• Rising investment in second-generation (2G) ethanol plants using agricultural residue and biomass.
• Growing support from state policies and incentives to sugar mills and distilleries.
• Urbanization and changing energy consumption patterns favoring cleaner fuels.

India Ethanol Market Trends

India ethanol market is poised to witness significant trends, driven by policy shifts and technological innovations. Blending mandates are not only expanding the production ecosystem but also encouraging private and foreign players to invest in ethanol distillation units. Additionally, there is a growing movement toward flex-fuel vehicles compatible with high ethanol blends. Digitalization in supply chain management and real-time tracking of ethanol blending are also gaining traction across major fuel retail chains.

Emerging Developments in the India Ethanol Market

In general, there are several emerging developments in India Ethanol Market as there is a shift from traditional sugarcane-based ethanol to a multi-feedstock approach that includes starch-based and lignocellulosic sources. In addition, the advent of 2G ethanol plants and public-private partnerships is a game-changer for sustainable production. Moreover, ethanol is being explored as a potential raw material in pharmaceuticals and other industrial applications, adding new revenue channels beyond fuel.

Major Companies in the India Ethanol Industry

• Balrampur Chini Mills
• Bharat Petroleum Corporation Ltd. (BPCL)
• Triveni Engineering & Industries Ltd.
• Reliance Industries Limited
• Indian Oil Corporation Ltd. (IOCL)
• Shree Renuka Sugars
• Praj Industries

List of Leading Companies in the India Ethanol Market

Below is a comprehensive list of the leading market players driving growth in this sector:

1. Bajaj Hindusthan Sugar Limited

Bajaj Hindusthan Sugar is among India's top sugar producers with robust ethanol manufacturing capacity, supporting ethanol blending programs nationwide.

2. Bharat Petroleum Corporation Limited (BPCL)

BPCL plays a vital role in ethanol procurement and distribution for fuel blending, aligning with the government's biofuel policies to reduce dependency on fossil fuels.

3. Hindustan Petroleum Corporation Limited (HPCL)

HPCL actively participates in ethanol blending programs and partners with multiple distilleries to secure consistent supply for cleaner fuel production.

4. Indian Oil Corporation Limited (IOCL)

IOCL is a leading state-owned oil and gas company that has significantly expanded its ethanol procurement for blending programs, supporting India's clean energy transition.

5. Balrampur Chini Mills Limited

Balrampur Chini Mills is one of India's largest integrated sugar producers, with significant ethanol production capacity from molasses-based distilleries.

6. Shree Renuka Sugars Limited

Shree Renuka Sugars is a prominent sugar and ethanol producer, focusing on capacity expansion to meet growing demand from the energy and industrial sectors.

7. Praj Industries Limited

Praj Industries is a global leader in bioenergy solutions, providing technology and turnkey solutions for ethanol production from various feedstocks.

8. Triveni Engineering & Industries Limited

Triveni Engineering is a major sugar and ethanol producer, investing in modern distilleries to enhance efficiency and sustainability.

9. Dhampur Sugar Mills Limited

Dhampur Sugar Mills produces ethanol as part of its integrated sugar operations, contributing to India's renewable energy goals.

10. EID Parry (India) Limited

EID Parry is a pioneer in India's sugar and bioenergy industry, producing ethanol from molasses and focusing on sustainable, eco-friendly production processes.

Ethanol market size in India : FAQ's