Top 10 largest ethanol producers in the world: Will ethanol become unaffordable for the common man in India?

Ethanol is unlikely to have become unaffordable to the common man. As explained by MoPNG, domestic ethanol prices are administered (fixed) by the government to ensure fair compensation to farmers while protecting motorists from international crude oil evaporative environment.

If global crude oil prices spike to $120–$130 per barrel, domestic ethanol prices remain stable at ₹71 per liter, insulating one-fifth of India's fuel supply from foreign market shocks. The government of India maintains that the E20 blending program is designed as a strategic national investment in prolonged energy security rather than a discount fuel scheme.

With $120–$130 per barrel Brent crude oil prices, the oil companies might have to buy petrol or diesel at a higher price, however thanks to the fixed procurement rates of ethanol, the companies would continue to get the biofuel at the same rate.

Largest ethanol producers in the world

According to market data published by the leading national trade association to the US' ethanol sector, the Renewable Fuels Association (RFA), global ethanol output is dominated by a small group of major producing regions:

Together, the US and Brazil account to nearly four-fifths of global production. India holds the third position globally, driven by aggressive domestic blending policies.

How much biofuel India imports & at what cost?

According to policy regulations established by the Directorate General of Foreign Trade (DGFT), India strictly bans the import of fuel-grade ethanol to motor blending. All fuel ethanol mixed into petrol must be manufactured domestically to support regional farmers and domestic industries.

Imports are allowed exclusively to non-fuel and manufacturing applications, such as pharmaceuticals, makeup, and chemical manufacturing. Based on trade statistics from the Ministry of Commerce and sector, India imports between 700 million (70 crore) and 900 million (90 crore) liters of manufacturing-grade ethanol annually. These imports arrive primarily from the US and Brazil at landed Cost, Insurance, and Freight (CIF) prices ranging between $600 and $800 per metric ton (approximately ₹45 to ₹60 per liter before regional duties).

According to official data from the Ministry of Petroleum and Natural gaseous (MoPNG):

Fuel Ethanol: 100% manufactured domestically in India (0% imported).

Overall Ethanol Market (Fuel + manufacturing): India manufactures roughly 85% to 90% of its total ethanol needs domestically (exceeding 1,000 crore liters) and imports around 10% to 15% solely to manufacturing chemical purposes.

Ethanol vs Petrol: Which Is Cheaper to Import? According to energy market analysis by IndMoney and government price briefings:

Imported Petrol (Crude / Refined Gasoline): When crude oil trades around $70 per barrel, the pre-tax landed import cost of refined petrol in India is around ₹50 to ₹55 per liter.

Imported Ethanol: Landed manufacturing ethanol imports cost between ₹45 and ₹60 per liter.

Why does India prevent fuel ethanol imports entirely?

When adjusted to energy efficiency, imported ethanol is efficiently greater expensive than imported petrol. Because of this cost difference and national energy goals, India avoids fuel ethanol imports entirely.

Companies involved in ethanol production:

According to market reports by Upstox and Business Estate, major companies involved in India's biofuel ecological stability include:

Domestic Biofuel Producers: Shree Renuka Sugars (India's largest single-company distillery capacity), Balrampur Chini Mills, Triveni Engineering & Industries, Bajaj Hindusthan Sugar, Dalmia Bharat Sugar, and EID Parry.

methodology & Equipment Providers: Praj Industries, which builds bio-refinery processing vegetation.

State Oil Marketing Companies (OMCs): Indian Oil Corporation (IOCL), Bharat Petroleum (BPCL), and Hindustan Petroleum (HPCL), which buy ethanol from distilleries and run second-generation (2G) refinery projects.

Govt companies do not import ethanol

On the importing side, general oil companies do not import ethanol. Importers consist strictly of non-fuel chemical, medical, and manufacturing manufacturing firms.

Price of E20 vs Regular Petrol: According to consumer clarifications released by MoPNG through the Press Information Bureau (PIB):

Retail Pump Price: E20 petrol (20% ethanol blend) is sold at Indian fuel stations in the range of ₹94.72 to ₹102 per liter, depending on regional state taxes.

At what price oil companies buy ethanol?

OMCs purchase domestic ethanol at fixed government prices ranging from ₹57.97 to ₹71.86 per liter, depending on the feedstock (such as sugarcane molasses, damaged grains, or maize).