India continues to make steady gains in its ethanol programme, with rising production, higher blending levels and expanding manufacturing capacity reshaping the country’s energy mix. The progress is also supporting economic growth and encouraging sustainable development in rural areas.
In the ongoing Ethanol Supply Year (ESY) 2025–26, ethanol blending in petrol touched 20 per cent in December 2025. During the month, Oil Marketing Companies (OMCs) received 102.4 crore litres of ethanol under the Ethanol Blended Petrol (EBP) Programme, while 90.2 crore litres were blended into petrol, according to official data.
Figures from the Petroleum Planning and Analysis Cell (PPAC) of the Ministry of Petroleum and Natural Gas show that between November and December 2025, the average blending level remained at 20 per cent. In this period, public sector OMCs received a total of 147.8 crore litres of ethanol, and overall blending reached 179.8 crore litres.
The faster pace of ethanol blending has helped lower India’s dependence on imported crude oil, resulting in foreign exchange savings and supporting the shift towards cleaner and more self-reliant energy sources.
For ESY 2025–26 (Cycle 1), OMCs have allocated about 1,048 crore litres of ethanol against offers of 1,776 crore litres submitted by producers nationwide. The companies had invited bids for the supply of 1,050 crore litres of ethanol for the current supply year.
Maize accounts for the largest share of the allocation at 45.68 per cent, or around 478.9 crore litres. This is followed by rice supplied through the Food Corporation of India at 22.25 per cent, or about 233.3 crore litres. Sugarcane juice makes up 15.82 per cent, or roughly 165.9 crore litres, while B-heavy molasses accounts for 10.54 per cent, or about 110.5 crore litres. Damaged food grains contribute 4.54 per cent, or around 47.6 crore litres, and C-heavy molasses represents 1.16 per cent, or about 12.2 crore litres.
As of November 2025, India’s total ethanol production capacity stands at approximately 1,990 crore litres. Industry stakeholders have urged the government to consider raising blending levels beyond 20 per cent, noting that existing capacity is not being fully utilised.
