India continues to make steady progress in the ethanol sector, with both production and blending levels increasing each year alongside expanding manufacturing capacity. This growth is transforming the country’s energy landscape, supporting economic development, and fostering sustainable progress in rural regions, reported ChiniMandi.
As informed by the Department of Food and Public Distributions (DFPD) the total ethanol production capacity in the country as on November 2025 is about 1990 crore litres, the contribution from the State of Uttar Pradesh is 236 crore litres. This information was shared in the Rajya Sabha by Minister of State for Petroleum and Natural Gas Suresh Gopi in response to a query on national ethanol production capacity and Uttar Pradesh’s contribution.
The government has been actively promoting ethanol-petrol blending through the Ethanol Blended Petrol (EBP) Programme. Under the National Policy on Biofuels – 2018, which was amended in 2022, the target for achieving 20% ethanol blending in petrol was advanced from 2030 to the Ethanol Supply Year (ESY) 2025–26 (November 1, 2025, to October 31, 2026). Public Sector Oil Marketing Companies (OMCs) reached 10% blending in June 2022—five months ahead of schedule during ESY 2021–22—and achieved 12.06% in ESY 2022–23 and 14.60% in ESY 2023–24. In ESY 2024–25, over 1,000 crore litres of ethanol were blended, resulting in an average blending rate of 19.24%. In October 2025 alone, blending reached 19.97%.
The Minister highlighted that to encourage the use of non-food biomass for second-generation ethanol production, the government launched the “Pradhan Mantri JI-VAN (Jaiv Indhan–Vatavaran Anukool fasal awashesh Nivaran) Yojana” in 2019, later amended in 2024. The scheme aims to set up advanced biofuel projects using lignocellulosic biomass and other renewable feedstocks. It provides for the establishment of commercial and demonstration-scale Advanced Biofuel Projects to enhance commercial viability and promote R&D in advanced biofuel technologies. Under the PM JI-VAN Yojana, financial assistance of up to ₹150 crore per commercial project and ₹15 crore per demonstration project has been approved.
He further noted that ethanol procurement prices have steadily risen over the years. For ESY 2024–25, the average procurement price of ethanol is ₹71.55 per litre (including transportation and GST), which exceeds the cost of refined petrol. Petrol prices—including those of ethanol-blended petrol—have been market-determined since June 26, 2010, with OMCs setting prices based on international product rates, domestic market conditions, and other factors.
