India continues to make significant progress in its ethanol sector, recording consistent year-on-year growth in production, blending levels, and overall capacity. This upward trajectory is not only transforming the country’s energy landscape but also playing a key role in boosting rural economies and supporting sustainable development.
According to data from the Petroleum Planning & Analysis Cell (PPAC), ethanol blending in petrol reached 19.9% in July 2025 during the ongoing Ethanol Supply Year (ESY) 2024–25. The average blending rate for the period between November 2024 and July 2025 stood at 19.1%.
In July alone, Oil Marketing Companies (OMCs) procured 85.3 crore litres of ethanol under the Ethanol Blended Petrol (EBP) Programme. This brought total ethanol offtake by OMCs to 722.7 crore litres for the November–July period.
Official figures show that 87.9 crore litres of ethanol were blended into petrol in July 2025, bringing the cumulative blending volume to 749 crore litres for the current ESY so far.
The government has set a target of achieving 20% ethanol blending in petrol by ESY 2025–26. Since the launch of the EBP Programme, ethanol blending has seen remarkable growth—from just 38 crore litres in ESY 2013–14 to over 707.4 crore litres in ESY 2023–24. This enabled the country to achieve an average blending rate of 14.6% during the last supply year.
As of June 30, 2025, India’s total annual ethanol production capacity has reached 1,822 crore litres, supported by 499 operational distilleries across the country for the ESY 2024–25.
Among the states, Maharashtra leads in ethanol production capacity with 396 crore litres, followed by Uttar Pradesh at 331 crore litres and Karnataka at 270 crore litres.
