# Ethanol Glut in India Drives Search for New Buyers

> India's ethanol industry faces a 7 billion litre surplus crisis as it seeks new markets amid oversupply.
- Title: Ethanol Glut in India Drives Search for New Buyers | Shortify
- Summary: India's ethanol industry faces a 7 billion litre surplus crisis as it seeks new markets amid oversupply. India's ethanol industry has 7 billion litres of…
- Keywords: india, ethanol, ethanol industry, ethanol oversupply, e20 fuel blending, biofuels, diesel blending, praj industries, Glut, Drives, Search, Buyers
- Source: The Economic Times — https://economictimes.indiatimes.com/industry/renewables/nearly-7-billion-litres-without-a-market-ethanol-glut-in-india-fuels-search-for-new-buyers/articleshow/134509040.cms
- Author: Prashant Mukherjee
- Published: 2026-09-27T00:00:00+00:00
- Read time: 1 min
- Topics: india, ethanol, ethanol industry, ethanol oversupply, e20 fuel blending, biofuels, diesel blending, praj industries
## Ethanol Surplus Crisis
India's ethanol industry faces a severe oversupply crisis with nearly seven billion litres of unused capacity.
## Capacity Expansion Outpaces Demand
Rapid capacity expansion has reached 20 billion litres, with another four billion litres added this year.
## Market Demand Shortfall
The E20 fuel blending programme requires 11 billion litres annually, while non-fuel sectors consume 3-3.5 billion litres.
## Distilleries Operating at 60% Capacity
Distilleries operate at barely 60% capacity, with utilisation expected to remain between 65% and 75% over the next three years.
## Government Pauses Higher Blends
The government has paused any move to mandatorily implement higher flexi-fuel blends to E25 or E30 amid consumer backlash.
## Differential Pricing Proposal
Ravindra Utgikar, chief sales officer at Wilo India, suggests moving to differential pricing for E10, E20, and E85 blends.

> Instead of mandating a single blend for all, we should move to differential pricing for different ethanol blends, E10, E20, E85
## Export Limitations
India has cleared only second-generation ethanol for exports since September 2025, with small volumes going to Tanzania, Angola, and Kenya.
## Bio-IBA Blending Opportunity
Praj Industries plans to blend bio-isobutanol with diesel, potentially creating a project opportunity of more than `3,000 crore.
## Key takeaway

India's ethanol industry has 7 billion litres of unsold ethanol due to oversupply, driving a search for new buyers and alternative markets.