Ethanol Blending

Centre's move to allow 1.5 million tonnes of sugar exports offers relief to a stressed sector grappling with ethanol allocation cuts, cane price hikes, and growing political pressure

New Delhi would seek a reciprocal US tariff of 20 per cent or less and a swift deal, fearing Indian exporters could fall further behind Southeast Asian rivals if negotiations drag on

Both grain and sugarcane ethanol producers criticise OMCs' allocation for 2025-26, citing unfair distribution, capacity underuse, and potential negative impact on the sugar sector

More than 350 operational distilleries across the country are facing an uncertain future due to inadequate procurement orders under the latest ethanol tender, with industry bodies flagging concerns over the allocation methodology that favours new entrants over existing units. The Ethanol Supply Year (ESY) 2025-26 tender issued by Oil Marketing Companies (OMCs) has come under fire from stakeholders who allege that the allocation criteria is creating artificial imbalances, while sidelining distilleries set up under prior government commitments. According to the tender document (#1000442332), zones where offers from local distilleries fall short of requirements are classified as deficit zones, with all local offers considered full for allocation. However, industry representatives say this approach ignores surplus capacity in neighbouring states, much of which was established under Long-Term Offtake Agreements (LTOA) and Expression of Interest initiatives promoted by OMCs themselves. "

A LocalCircles survey found that 52 per cent of petrol vehicle owners with cars bought in 2022 or earlier faced unusual wear and tear or repairs in 2025, affecting engines, tanks and carburetors

Ethanol blending has transformed the balance sheets of sugar mills and India's sugar cooperatives sector has benefitted immensely after Narendra Modi became the prime minister, Union minister Amit Shah said on Sunday. He also said that the Centre, under PM Modi's leadership, will extend all possible assistance to farmers in Maharashtra who have suffered losses due to heavy rains in the state recently. The Union Minister for Home and Cooperation was addressing a farmers' rally after inaugurating the expanded capacity of Dr Vitthalrao Vikhe Patil Cooperative Sugar Factory in Maharashtra's Ahilyanagar district, which has increased its crushing capacity to 10,000 tonnes of sugarcane per day. He also unveiled statues of Dr Vitthalrao Vikhe Patil, a notable figure in the cooperative movement, and his son and former Union minister Dr Balasaheb Vikhe Patil. The sugar cooperative sector has benefitted immensely after Narendra Modi became the prime minister, he said, adding that sugar ...

Hardeep Singh Puri said India has met the 20 per cent ethanol blending target six years ahead of schedule but further increases will be reviewed amid concerns over vehicle efficiency

Following the commissioning of its Rs 4,500 crore bamboo-based biorefinery in Assam, AM Green plans more projects in India to scale ethanol production for petrol blending

Today's wrap of the Opinion Page considers the E20 mandate and its potential impacts, what a US court's ruling on Google means, India's spice trade, and the regulatory aspects of options trading

From the consumer point of view, the transition needed better management

Transport minister Nitin Gadkari, however, on Wednesday said that concerns about E20 are being fuelled by the petroleum lobby

Union Minister Nitin Gadkari dismissed concerns over E20 fuel efficiency as propaganda by a powerful petrol lobby, while stressing growth and innovation in the auto sector

Since the rollout of the E20 blend, concerns have been raised that it may reduce vehicle mileage, affect engine life, and increase costs

E20 is petrol blended with 20 per cent ethanol, an alcohol mainly produced from sugarcane and grains such as maize and rice

The world's second-biggest sugar producer had restricted production in the current marketing year because of a drop in sugarcane supplies

The Supreme Court has dismissed a plea challenging the E20 ethanol blending policy, reinforcing India's push for cleaner fuels and support for sugarcane farmers

Automakers are in the process of informing dealers about E20 usage in older cars and related guidelines

India, the world's third largest car market, set a 2025 target years ago for 20% ethanol blending in fuel, called E20, as part of Prime Minister Narendra Modi's focus on clean energy

Over one-third of vehicle owners also report reduced mileage since E20 petrol introduction; many urge govt to consider optional, lower-priced sale

The usage of 20 per cent ethanol-blended petrol in vehicles could lead to a 2-5 per cent drop in fuel efficiency, depending on the type of cars, according to automotive industry experts. In the midst of social media debate over the impact of E20 fuel on vehicles, automotive engineers working with some of the major automakers, whom PTI spoke to, said that in older vehicles, which are not E20 compliant, there could be erosion of gaskets, fuel rubber hoses and pipes in the long term, but not immediately. "There can be a drop in mileage ranging from 2-5 per cent, depending on the type of vehicle. This is purely because of the lower calorific value of ethanol compared to petrol," said an expert requesting anonymity. Earlier this month, the Oil Ministry clarified that "the critiques suggest that E20 causes a 'drastic' reduction in fuel efficiency are misplaced". However, it did not state the percentage drop in fuel efficiency. "The efficiency drop (if any) in E10 vehicles has been margin