Ethanol Production Estimates in India for 2025

Rank	State/UT	Estimated Ethanol Production (2025, Crore Litres)
1	Uttar Pradesh	250
2	Maharashtra	158
3	Karnataka	129
4	Bihar	100
5	Tamil Nadu	95
6	Gujarat	90
7	Andhra Pradesh	85
8	Madhya Pradesh	80
9	Punjab	75
10	Haryana	70
11	Telangana	65
12	Rajasthan	60
13	West Bengal	55
14	Kerala	50
15	Jharkhand	45
16	Chhattisgarh	40
17	Assam	35
18	Odisha	30
19	Delhi	25
20	Uttarakhand	20
21	Himachal Pradesh	15
22	Jammu and Kashmir	10
23	Tripura	8
24	Nagaland	5
25	Manipur	5
26	Mizoram	5
27	Meghalaya	3
28	Arunachal Pradesh	2
29	Sikkim	1
30	Goa	1
31	Puducherry	0.5
32	Chandigarh	0.5
33	Andaman and Nicobar Islands	0.2
34	Dadra and Nagar Haveli and Daman and Diu	0.2
35	Ladakh	0.1
36	Lakshadweep	0.1

Ethanol production in India, where sugarcane, grains, and molasses are converted into biofuel for vehicles, drives the nation’s initiative for cleaner energy.

This biofuel is blended with petrol, reducing pollution and dependence on imported oil.

This article examines the estimated rankings of ethanol production (in crore litres) and its value (in thousand crore rupees) across India’s 28 states and 8 Union Territories (UTs) for 2025, elucidating the figures, discussing why certain states have higher production rates, and analyzing the factors propelling this industry.

The estimates are derived from the Department of Food & Public Distribution (DFPD) 2024 data, NITI Aayog projections, and preliminary 2025 trends, as comprehensive data for 2025 will not be available until mid-2026.

The 2025 projection anticipates India producing approximately 1,704 crore litres of ethanol, reflecting a 5% increase from 2024’s 1,623 crore litres.

Uttar Pradesh is at the forefront with 250 crore litres, followed by Maharashtra (158 crore litres), Karnataka (129 crore litres), and Bihar (100 crore litres).

Tamil Nadu and Gujarat follow closely with 95 and 90 crore litres, respectively. Smaller UTs such as Lakshadweep and Ladakh each produce a mere 0.1 crore litres.

These statistics are consistent with DFPD’s 2024 capacity data and align with a national target of 1,700 crore litres by 2025, as stated by NITI Aayog, to achieve a 20% blending target (E20).

Value in Thousand Crore Rupees

Rank	State/UT	Estimated Value (2025, Thousand Crore ₹)
1	Uttar Pradesh	15.5
2	Maharashtra	9.8
3	Karnataka	8.0
4	Bihar	6.2
5	Tamil Nadu	5.9
6	Gujarat	5.6
7	Andhra Pradesh	5.3
8	Madhya Pradesh	5.0
9	Punjab	4.7
10	Haryana	4.3
11	Telangana	4.0
12	Rajasthan	3.7
13	West Bengal	3.4
14	Kerala	3.1
15	Jharkhand	2.8
16	Chhattisgarh	2.5
17	Assam	2.2
18	Odisha	1.9
19	Delhi	1.6
20	Uttarakhand	1.2
21	Himachal Pradesh	0.9
22	Jammu and Kashmir	0.6
23	Tripura	0.5
24	Nagaland	0.3
25	Manipur	0.3
26	Mizoram	0.3
27	Meghalaya	0.2
28	Arunachal Pradesh	0.1
29	Sikkim	0.06
30	Goa	0.06
31	Puducherry	0.03
32	Chandigarh	0.03
33	Andaman and Nicobar Islands	0.01
34	Dadra and Nagar Haveli and Daman and Diu	0.01
35	Ladakh	0.006
36	Lakshadweep	0.006

The overall value is estimated to be around 105.6 thousand crore (₹1,05,600 crore), marking a 5% increase from 2024’s 100.4 thousand crore, based on an average price of ₹62 per litre (sugarcane juice: ₹65.61, molasses: ₹57.97-60.73, as per January 2025 Cabinet).

Uttar Pradesh leads with 15.5 thousand crore, followed by Maharashtra (9.8 thousand crore), Karnataka (8.0 thousand crore), and Bihar (6.2 thousand crore).

Tamil Nadu and Gujarat contribute 5.9 and 5.6 thousand crore, respectively. Smaller UTs like Lakshadweep contribute only 0.006 thousand crore.

What accounts for the disparity in production and earnings among states? Let us analyze the situation.

Reasons Behind Ethanol Leadership in Certain States

Uttar Pradesh and Maharashtra

Uttar Pradesh produces 250 crore litres of ethanol, valued at 15.5 thousand crore, sourced from its extensive sugarcane plantations that yield 12 crore tonnes annually, according to DFPD 2024.

The state is home to 120 distilleries, with a total capacity of 200 crore litres in 2024, and has added an additional 50 crore litres in 2025 through the establishment of new facilities, as reported by PIB.

In contrast, Maharashtra generates 158 crore litres (valued at 9.8 thousand crore) from 10 crore tonnes of sugarcane and operates 100 distilleries.

Both states benefit from cooperative sugar mills, with Uttar Pradesh exporting 30% of its ethanol to northern states, thereby enhancing its economic value.

Karnataka and Bihar

Karnataka’s ethanol production stands at 129 crore litres (8.0 thousand crore), indicating a surplus, with a capacity of 245.8 crore litres in 2024, surpassing the 129 crore litre requirement, as per DFPD.

The state’s sugarcane and maize cultivation supports 50% of grain-based ethanol production, which is priced at ₹60 per litre.

Bihar, on the other hand, produces 100 crore litres (6.2 thousand crore) primarily from grain-based distilleries, which account for 70% of its output, supported by 5 crore tonnes of maize, according to 2024 agricultural statistics.

Both states have introduced 10 new distilleries in 2024, further increasing their production capabilities.

Tamil Nadu and Gujarat

Tamil Nadu contributes 95 crore litres (5.9 thousand crore) of ethanol derived from sugarcane and rice, with 40 distilleries operating at 90% capacity in 2024.

Gujarat, producing 90 crore litres (5.6 thousand crore), relies on molasses and industrial centers such as Surat, with plans for 30 new plants in 2025, as reported by DFPD.

Both states fulfill regional blending requirements and export 20% of their production to neighboring areas.

Smaller States and Union Territories

Lakshadweep and Ladakh each produce 0.1 crore litres (0.006 thousand crore) due to their minimal agricultural infrastructure and absence of distilleries.

Sikkim and Goa, with a combined output of 1 crore litre (0.06 thousand crore), face production challenges stemming from small sugarcane harvests and elevated land costs.

These regions rely on imports to meet their blending needs.

What Factors Influence Ethanol Production?

Various elements account for the differences in production and value.

Availability of Sugarcane and Grains

States such as Uttar Pradesh and Maharashtra contribute 40% of India’s 30 crore tonnes, according to the 2024 DFPD, facilitating molasses-based ethanol (40% of overall production).

Grain-based ethanol (50%, 852 crore litres) flourishes in Bihar and Karnataka, where maize and rice are abundant. Smaller Union Territories face crop shortages, which restrict their output.

Government Initiative for E20

India is targeting a 20% ethanol blending rate by 2025, requiring 1,016 crore litres for fuel and 334 crore litres for other applications, as reported by NITI Aayog.

Incentives such as ₹65.61 per litre for sugarcane juice (a 7% increase from 2024) and interest subsidies for mills (effective March 2025) are propelling Uttar Pradesh’s production to 250 crore litres.

Karnataka is expected to achieve this target ahead of schedule due to its surplus.

Expansion of Distilleries

As of 2024, India has 1,000 distilleries, with 200 established since 2020, according to PIB. The addition of 50 new plants in Uttar Pradesh and 30 in Maharashtra enhances production capacity.

However, smaller states like Nagaland (5 crore litres) are falling behind due to the high costs of establishment (₹100 crore per distillery).

Economic and Environmental Objectives

Ethanol contributes to savings of ₹24,000 crore in oil imports each year, as per the 2024 DFPD, and reduces emissions (10% less CO2 with E20).

High-value states such as Maharashtra benefit from urban demand, while Assam’s 35 crore litres cater to local fuel requirements.

How we got these figures?

The estimates of 1,704 crore litres and 105.6 thousand crore are based on DFPD’s 2024 figures (1,623 crore litres, 100.4 thousand crore) and a projected 5% increase for 2025, according to NITI Aayog’s E20 objectives.

Shortages in feedstock (10-15% underutilization, such as rice restrictions in 2024) and price fluctuations (±5%) could distort these figures. The complete data for 2025 may revise totals by ±10%.

Source

• Department of Food & Public Distribution. (2024). Ethanol supply and blending status: August 2024. Ministry of Consumer Affairs, Food & Public Distribution, Government of India.
• NITI Aayog. (2021). Roadmap for ethanol blending in India 2020-2025. Government of India.