India is making steady gains in the ethanol sector, with year-on-year increases in production, blending levels and manufacturing capacity. This momentum is transforming the country’s energy landscape while supporting economic growth and encouraging sustainable development in rural regions.
In the current Ethanol Supply Year (ESY) 2025–26, ethanol blending in petrol touched 20 per cent in November 2025. During the same month, Oil Marketing Companies (OMCs) received 45.5 crore litres of ethanol under the Ethanol Blended Petrol (EBP) Programme. Official figures show that 89.6 crore litres of ethanol were blended into petrol in November alone.
In the previous ESY 2024–25, OMCs blended 1,022.8 crore litres of ethanol, achieving an average blending rate of 19.2 per cent.
This rapid progress has contributed to lower reliance on imported crude oil, delivering substantial foreign exchange savings and reinforcing India’s shift towards a cleaner, more self-reliant energy system.
For ESY 2025–26 (Cycle 1), OMCs have allocated about 1,048 crore litres of ethanol against offers totalling 1,776 crore litres submitted by manufacturers nationwide. The companies had invited tenders for the supply of 1,050 crore litres of ethanol during the cycle.
Maize accounts for the largest share of the allocation at 45.68 per cent, or roughly 478.9 crore litres. This is followed by FCI rice at 22.25 per cent (around 233.3 crore litres), sugarcane juice at 15.82 per cent (about 165.9 crore litres), B-heavy molasses at 10.54 per cent (around 110.5 crore litres), damaged food grains at 4.54 per cent (approximately 47.6 crore litres) and C-heavy molasses at 1.16 per cent (about 12.2 crore litres).
As of November 2025, India’s total ethanol production capacity stands at nearly 1,990 crore litres. Industry stakeholders are now urging the government to raise blending levels beyond 20 per cent, noting that existing production capacity remains underutilised
