India has made significant strides in ethanol blending, thanks to supportive government policies, earning global recognition for its achievements. Brazil, a long-time leader in ethanol production, has frequently praised India’s progress in this area.
In a recent interview with ET Now, Hardeep Singh Puri, India’s Minister of Petroleum and Natural Gas, discussed the country’s success and shared insights from the Brazilian ethanol industry. “The progress has been phenomenal,” Puri said, referring to the remarks made by Unica, Brazil’s ethanol association. “The president of Unica told me that what India has accomplished in the past few years took Brazil 20 years to achieve. I thanked him, but also said we learned from you.”
Puri highlighted that India’s approach has expanded beyond sugarcane to include maize and other crops, underscoring the country’s diversified ethanol production strategy.
Ethanol blending in India has seen remarkable growth, rising from just 1.53% in the Ethanol Supply Year (ESY) 2013-14. As of December 2024, India achieved its highest-ever ethanol blending rate, reaching 18.2% in the ongoing ESY 2024-25. To further boost production, the government reduced the price of rice from the Food Corporation of India (FCI) for ethanol-producing distilleries from Rs 2,800 per quintal to Rs 2,250 per quintal.
India’s target is to reach 20% ethanol blending by the end of ESY 2025-26, a goal the government remains confident of meeting. To achieve this, around 1,016 crore liters of ethanol will be required, with total demand, including other uses, reaching 1,350 crore liters.
The push for increased ethanol blending is a key part of India’s broader strategy to reduce reliance on imported fuels. The rise in ethanol production has also provided a significant financial boost to India’s sugar mills. Over the past decade, sugar mills have generated more than ₹94,000 crore in revenue from ethanol sales, improving cash flow and enabling quicker payments to cane farmers.
Moreover, higher ethanol production has reduced India’s dependence on imported petrol and crude oil, contributing to substantial foreign exchange savings.
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