From the Editor: Promising News Regarding Grain-Based Ethanol

by Arvin Donley (World Grain) When the United States ramped up corn-based ethanol production in the early part of this century, a food vs. fuel debate ensued with many proclaiming that increased grain-based biofuels output would threaten global food security. It was a worthwhile debate, but we now know there is more than enough grain available to feed the world and fill its gas tanks.

Food insecurity is mostly rooted in conflict and poverty, not a lack of production. Wars, political instability and economic inflation disrupt local agricultural production and prevent humanitarian food aid from reaching those in need. In fact, diverting a substantial percentage of grain for biofuels and other industrial uses helps increase the price of grain, thereby incentivizing production.

Grain accounts for 60% to 70% of the raw material used in ethanol production, with sugarcane and biomass accounting for the remaining percentage, according to the US Department of Energy. Corn remains king among grains processed into ethanol, accounting for 90% of that total.

The resurgence in grain-based ethanol output is linked to three primary factors. Lower grain costs and higher ethanol prices have generated strong financial returns for producers. Grain alcohol increasingly is utilized beyond fuel for beverage alcohol, food processing and pharmaceuticals. More countries are increasing ethanol blending mandates to 15% or greater.

Brazil, the world’s third largest corn producer and second-ranked ethanol producer behind the United States, is rapidly expanding its corn-based ethanol capacity after it almost exclusively used sugarcane as the raw material for many years. Canada, Germany, France and Spain are increasing their use of wheat in ethanol production.

Traditionally a corn exporter, India is decreasing exports and increasing imports because of the growing domestic demand for industrial uses. Besides being increasingly utilized as a fuel source, corn is also in higher demand for the country’s booming poultry and livestock sectors, with the animal feed industry consuming nearly half of the country’s corn production. Over the past 10 years, India’s corn production and consumption have increased by 127% to 52 million tonnes each, according to the Foreign Agricultural Service of the US Department of Agriculture. READ MORE

Excerpt from ANI/The Tribune: India's ethanol blending programme is entering a more resilient phase as a diversified mix of grain- and sugar-based feedstocks strengthens supply stability and positions the industry to support higher ethanol blending in the coming years, according to the All India Distillers' Association (AIDA).

The AIDA release said the ongoing Ethanol Supply Year (ESY) 2025-26 reflects the growing maturity of India's biofuel ecosystem, with multiple feedstocks ensuring more stable ethanol supplies by reducing dependence on any single agricultural crop and adopting a balanced mix of raw materials.

"The latest ethanol supply data demonstrates that India's biofuel programme has evolved into a robust and resilient ecosystem driven by diversified feedstocks," AIDA President Vijendra Singh said.

He added that while maize continues to be the largest contributor, the increasing participation of surplus food grains and sugarcane-based feedstocks has strengthened supply chains and enhanced India's energy security.

"As the country moves beyond the E20 milestone, policy support for higher ethanol blends, Flex-Fuel Vehicles (FFVs), ethanol-diesel blending and next-generation biofuels will be essential to fully utilise the significant production capacity created by the industry," Singh said.

AIDA said the balanced contribution from multiple feedstocks has improved year-round ethanol availability, strengthened supply resilience and reduced dependence on any single crop, supporting the country's clean energy and energy security objectives.

The association said India's expanding ethanol production capacity and wider participation from grain and sugar sectors are expected to support higher blending targets while creating additional opportunities for farmers and rural supply chains. It added that policy measures promoting higher ethanol blends, flex-fuel mobility and new ethanol applications would be critical to fully utilise the industry's growing capacity, reduce crude oil imports and support India's long-term clean energy transition. READ MORE