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2 clusters · 4 sources · 9 days · First seen · Last updated

India bio-energy and ethanol production expansion

Overview

India is expanding its bio-energy sector through increased ethanol supply and the diversification of the sugar industry. As of late August 2026, India supplied 895 crore litres of ethanol for the 2025-26 Ethanol Supply Year, meeting approximately 85 percent of its contracted volume. This supply utilized a mix of grain-based feedstock—primarily maize and surplus rice—and sugar-based sources such as sugarcane juice and molasses.

To bolster economic viability and energy security, the Indian government is encouraging sugar mills to transition toward the energy and power sectors. This involves a “waste to wealth” approach, utilizing agricultural residues like bagasse and paddy straw. Additionally, the government has operationalized the Rs 23,731-crore GOBARdhan scheme to convert organic waste into compressed biogas (CBG). To incentivize private investment, new guidelines offer producers assured offtake and government-backed administered prices for at least 10 years.

Entities

Petroleum and Natural Gas Ministry · Nitin Gadkari · India · National Federation of Cooperative Sugar Factories Ltd · Food Corporation of India

Timeline

  1. [BUSINESS] 2 sources
    India promotes sugar mill diversification into ethanol and biogas

    India is promoting energy diversification in the sugar industry through ethanol and compressed biogas (CBG) production, supported by the government's Rs 23,731-crore GOBARdhan scheme.

  2. [BUSINESS] 2 sources
    India ethanol supply reaches 895 crore litres

    India's ethanol supply reached 895 crore litres by August-end, with grain-based sources like maize and surplus rice accounting for approximately 70 percent of the total volume.

Sources

bhaskarhindi.com · chinimandi.com · samacharnama.com · theshillongtimes.com