India Fuels Up: Nears 20% Ethanol Blend Ahead of Schedule

In January 2025, India reached a milestone 19.6% ethanol blending in petrol—up from just 5% in 2019—bringing the country close to achieving its 20% target well before the original 2030 deadline under the Ethanol Blended Petrol (EBP) Programme.

Launched to reduce dependence on crude oil imports and promote cleaner fuels, the EBP Programme has expanded rapidly. Ethanol-blended petrol supplied by public sector oil marketing companies increased from 3,413 crore litres in 2019–20 to an estimated 4,828 crore litres in 2023–24, positioning India as the world’s third-largest ethanol producer, after the United States and Brazil.

Driven by strong policy support, infrastructure growth, and financial incentives, the programme has significantly scaled ethanol production. A notable shift has been the transition from sugarcane-based ethanol to grain-based sources like maize. Grain-based ethanol accounted for 51% of total procurement in 2023–24, rising from 9.51 crore litres in 2018–19 to 70.21 crore litres in 2021–22. This diversification enables year-round ethanol supply and creates a stable market for surplus grains, supporting farmers’ incomes.

To meet the 20% blending goal, India needs 1,016 crore litres of ethanol—well within reach given its current production capacity of 1,700 crore litres.

News by Rahul Yelligetti.