India is making significant strides in its ethanol sector, with consistent year-on-year growth in production, blending levels, and overall capacity. This progress is reshaping the nation’s energy landscape and contributing to economic development—particularly in rural areas—by promoting sustainable and decentralized growth.
According to data from the Petroleum Planning & Analysis Cell (PPAC), ethanol blending in petrol reached 19.8% in August 2025 during the ongoing Ethanol Supply Year (ESY) 2024–25. The average blending rate between November 2024 and August 2025 stood at 19.1%, reflecting steady progress toward cleaner fuel usage.
In August alone, Oil Marketing Companies (OMCs) procured 97.8 crore litres of ethanol under the Ethanol Blended Petrol (EBP) Programme, bringing the cumulative offtake for the period to 820.5 crore litres. Of this, 88.5 crore litres were blended with petrol in August, pushing the total ethanol blending volume to 837.5 crore litres since the start of ESY 2024–25.
So far this year, ethanol supply from grain-based sources has reached 526.01 crore litres, while sugar-based feedstocks contributed 294.51 crore litres, according to official sources.
The rapid acceleration in ethanol production and blending has enabled India to achieve 20% ethanol blending in petrol in 2025—a major milestone reached five years ahead of the original 2030 target, as recently announced by Petroleum and Natural Gas Minister Hardeep Singh Puri.
This achievement is not only a win for energy security but also delivers economic benefits by reducing dependence on imported crude oil and saving substantial foreign exchange.
In a further boost to the ethanol ecosystem, the Indian government has announced that for the upcoming Ethanol Supply Year 2025–26, sugar mills and distilleries will be allowed to produce ethanol from sugarcane juice, sugar syrup, B-heavy molasses (BHM), and C-heavy molasses (CHM) without restrictions. This policy decision is expected to enhance production flexibility and support ethanol producers across the country.
India’s ethanol success story continues to be a key pillar in its clean energy transition, with broader implications for rural livelihoods, agricultural surplus management, and sustainable development.
