Grain-Based vs Sugarcane-Based Ethanol in India: Key Differences and the Shift

When people talk about ethanol in India, they usually think of sugarcane. Today, that’s no longer the full picture. More than two-thirds of the ethanol blended into petrol now comes from grains. How did that shift happen, and why does it matter?

India achieved 20% ethanol blending (E20) in 2025, five years ahead of schedule. This wasn’t the result of scaling a single feedstock, but of expanding production into grain-based ethanol.

This article explains the difference between grain-based and sugarcane-based ethanol, how each is produced, their yields, byproducts, and why India is shifting toward grains.

What is Grain-Based vs Sugarcane-Based Ethanol?

The main difference between the two lies in the raw material used.

Sugarcane-Based Ethanol

Produced from:

• Molasses (byproduct of sugar production)
• Cane juice
• Sugar syrup
• Molasses is derived after sugar extraction and already contains fermentable sugars, allowing it to go directly into fermentation.

Grain-Based Ethanol

Produced from:

• Maize (corn)
• Broken rice
• Surplus or damaged food grains not suitable for human consumption

Grains contain starch, not sugar.

This starch must first be converted into fermentable sugars before ethanol can be produced.

This difference: sugar already present versus starch that needs conversion, is what makes the two production processes distinct.

Sugarcane vs Grain: Ethanol Production Process

Both methods produce fuel-grade ethanol (99.9% purity), but the steps involved are different.

Sugarcane-Based Ethanol Process

1. Collection: Molasses or cane juice is collected.
2. Fermentation: Yeast converts sugars into ethanol and CO₂.
3. Distillation: The mix is then distilled to increase alcohol concentration.
4. Dehydration: Residual water is removed to reach fuel-grade purity.

This is a shorter process because fermentable sugars are already available.

Grain-Based Ethanol Process

Grain-based production includes additional steps before fermentation:

1. Milling: Grain is milled into a coarse flour, increasing the surface area so water and enzymes can act on the starch effectively.
2. Liquefaction: The milled grain is mixed with water and heated. Starch is broken into smaller chains using heat and enzymes.
3. Saccharification: Starch is converted into fermentable sugars using a second enzyme.
4. Fermentation: Yeast converts the sugars into ethanol and CO₂ over 50 to 72 hours. The CO₂ released here can be captured and purified for industrial use.
5. Distillation: The fermented mash is heated in distillation columns. Ethanol vapourises at a lower temperature than water, separates out, and is condensed back into a high-concentration liquid.
6. Dehydration: The ethanol is passed through a molecular sieve to remove residual water, bringing it to 99.9% purity for fuel-grade blending.

These additional steps increase complexity but improve overall output.

Explore in detail: How Ethanol is Made

Ethanol Yield per Tonne: Grain vs Sugarcane

Grain-based feedstocks produce more ethanol per tonne:

Feedstock	Ethanol Yield (Litres/Metric Tonne)
Broken Rice	~420
Maize	~380
Sugar Syrup	~300–320
C-Heavy Molasses	~220–250

Higher yield is one of the key reasons behind the shift toward grains.

Byproducts of Ethanol Production

Ethanol is the primary product, but byproducts play a major role in overall efficiency and economics.

Sugarcane-Based Byproducts

• Bagasse: Used as boiler fuel within the plant
• Press mud: Used as organic fertilizer
• CO₂: Can be captured and purified for industrial use
• Spent wash: Requires treatment before disposal

Grain-Based Byproducts

• DDGS (Dried Distillers Grains with Solubles): Protein and fibre-rich solid left used as animal feed for cattle, poultry, and aquaculture
• Maize oil: Used in food and industrial applications
• CO₂: Captured from fermentation and reused
• Fly ash: Used in brick manufacturing

Grain-based distilleries generate higher-value co-products. DDGS, in particular, has strong demand in India’s livestock and poultry sectors.

At Edhas Biofuel, these outputs are integrated into operations, ensuring that each byproduct is utilised rather than treated as waste.

Ethanol Pricing in India by Feedstock (2024–25)

Government pricing has directly influenced the shift toward grain-based ethanol

Feedstock	Price (₹/litre)
Maize	₹71.86
Cane Juice/Syrup	₹65.61
B-Heavy Molasses	₹60.73
FCI Rice	₹58.50
C-Heavy Molasses	₹57.97

Maize-based ethanol receives the highest price. This pricing structure was designed to encourage investment in grain-based distilleries beyond traditional sugarcane regions.

As a result, over ₹40,000 crore has been invested in grain-based capacity across multiple states. By ESY (Ethanol Supply Year) 2024–25, grain-based feedstocks accounted for around 69% of ethanol supplied to oil marketing companies (OMCs), with maize alone contributing about 48%.

Why India is Shifting to Grain-Based Ethanol

For most of the programme's early history, sugarcane was India's primary ethanol feedstock. So what changed?

1. Reduced Dependence on Sugarcane

Weak sugarcane seasons in 2023–24 and 2024–25 caused sugar output to drop from a record 359 lakh tonnes in 2021–22 to an estimated 261 lakh tonnes in 2024–25. To protect domestic supply, the government restricted diversion of cane juice and B-heavy molasses for ethanol, highlighting the risks of relying on a single crop.

2. Lower Impact on Food Supply

Using cane juice for ethanol reduces sugar availability. Grain-based ethanol avoids this issue by using:

• Broken rice not suitable for human consumption
• Surplus maize beyond food and feed demand

This makes grain-based ethanol easier to manage during supply constraints.

3. Higher Ethanol Yield

Grains produce more ethanol per tonne compared to molasses, improving efficiency.

4. Wider Geographic Participation

Sugarcane cultivation is region-specific. Grain-based ethanol allows participation from states such as Bihar, Madhya Pradesh, Punjab, Andhra Pradesh, and Chhattisgarh, expanding farmer income opportunities.

5. Year-Round Production

Sugarcane processing is seasonal. Grain-based distilleries can operate throughout the year, improving capacity utilisation.

Grain-Based vs Sugarcane-Based Ethanol: Is One Better?

It depends on the criteria.

Sugarcane-based ethanol:

• Simpler and faster process
• Established infrastructure
• Strong in traditional sugar-producing regions

Grain-based ethanol:

• Higher yield
• More valuable byproducts
• Year-round production
• Less dependence on rainfall
• Wider geographic reach

India’s approach is not to replace one with the other, but to use both in balance.

Current Ethanol Supply Mix in India

Grain-based ethanol now dominates supply:

• ~69% from grain-based sources
• ~48% from maize alone

For ESY 2025–26:

Total demand: 1,050 crore litres

Total offers: 1,776 crore litres

• Grain-based: 1,304 crore litres
• Sugarcane-based: 471 crore litres

This reflects a clear shift, while maintaining a dual-feedstock system.

Future of Ethanol in India

To move beyond E20 blending, India will need:

• Expanded grain-based capacity
• Continued sugarcane-based production
• Second-generation ethanol from agricultural residues such as paddy straw and bagasse

Diversification will remain central to the programme.

Role of Edhas Biofuel in Grain-Based Ethanol

Edhas Biofuel operates in the grain-based ethanol segment using maize and broken rice.

The focus is on full resource utilisation:

• Ethanol for fuel blending
• DDGS for animal feed
• Maize oil for industrial and food use
• CO₂ for commercial applications
• Fly ash for brick manufacturing

This approach ensures that every output has a defined use.

A More Balanced Ethanol Strategy for India

India’s ethanol blending success is built on diversification. Moving from a sugarcane-dominated system to one that includes grains has improved supply stability, increased output, and expanded participation across regions.

Grain-based ethanol is not replacing sugarcane, it is strengthening the system by reducing risk and improving efficiency.