New Delhi, Dec. 26 -- Exports are unlikely to provide a solution for surplus ethanol in India, according to CK Jain, President of the Grain Ethanol Manufacturers Association (GEMA), who said domestic consumption has stagnated despite a sharp rise in production capacity.

Jain said ethanol consumption has effectively plateaued at around 1,200 crore litres, even though the industry is capable of supplying significantly more.

"Today we are capable of supplying 1,500 crore litres, but consumption has stopped," he said.

Though the industry is grappling with excess production, Jain ruled out exports as a solution for absorbing surplus ethanol.

"How can we export when grain prices in India are among the highest in the world?" he asked. "We ar...