Ethanol Production

Sugar industry has demanded a bigger share of ethanol supply contracts for the 2025-26 season, warning that inadequate allocation could trigger financial stress and delay payments to cane farmers, an industry body said on Wednesday. The Indian Sugar & Bio-Energy Manufacturers Association (ISMA) said sugar mills have been allocated just 289 crore litres of ethanol -- 28 per cent of the total requirement of 1,050 crore litres, while grain-based distilleries received 760 crore litres, or 72 per cent. The allocation falls short despite the sugar sector investing more than Rs 40,000 crore to build ethanol capacity exceeding 900 crore litres, ISMA said. "There has been some kind of a policy gap and planning gap as far as the OMCs (oil marketing companies) are concerned, which has led to the abnormality and disruption in allotment of ethanol for the sugar industry," ISMA Director General Deepak Ballani told reporters. The ethanol blending programme was launched to help the sugar industry

The government is considering allowing sugar exports in the 2025-26 marketing year, as surplus stocks accumulate due to lower-than-expected diversion of the sweetener for ethanol production, a top government official said on Wednesday. The country's sugar mills diverted only 3.4 million tonnes of sugar for ethanol manufacturing in 2024-25, well below the projected 4.5 million tonnes, Union Food Secretary Sanjeev Chopra told PTI in an interview. This has resulted in high opening stocks for the current 2025-26 marketing year that runs from October to September, he said. Sugar production for 2025-26 is expected to reach 34 million tonnes against the annual domestic demand of 28.5 million tonnes, Chopra added. When asked about the industry's demands to allow exports as well as higher diversion for ethanol, Chopra said: "We are definitely having a surplus of sugar... We are considering allowing exports." He hinted that a decision might be taken soon, as the government would like to giv

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. "

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Prime Minister Narendra Modi on Sunday inaugurated a Rs 5,000-crore bamboo-based ethanol plant at Numaligarh in Assam's Golaghat district. The plant is a zero-waste' facility, which will utilise all parts of the bamboo plant, and is expected to give a Rs 200-crore boost to the rural economy in the state, officials said. It will source 5 lakh tonnes of green bamboo from four northeastern states, benefitting over 50,000 people directly and indirectly, they said. Earlier in the day, the PM laid the foundation stones for health and infrastructure projects worth Rs 6,300 crore at Mangaldoi in Darrang district. Modi had arrived in Assam on Saturday evening and attended Bharat Ratna awardee Bhupen Hazarika's birth centenary celebrations.

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

The Odisha government is planning to supply broken rice for ethanol production, with more farmers taking up paddy cultivation following an increase in the procurement rate, officials said on Tuesday. The state has the main ethanol plant in Bargarh district, which uses both rice grain and rice straw to produce the item for fuel blending, they said. There are smaller ethanol plants in the state as well, utilising grain feedstock, with the Food Corporation of India (FCI) allocating surplus rice to them for the ethanol blended petrol (EBP) programme. A discussion regarding the proposal was held at the first meeting of the Inter-Ministerial Committee for procurement for the Kharif 2025-26 season on Monday, officials said. The meeting, chaired by Deputy CM KV Singh Deo, who is in charge of the Agriculture and Farmer Empowerment Department, discussed the preparation of a roadmap for post-paddy purchase management, they said. The government has planned to procure the Kharif crops by the e

The petition asked for ethanol labelling at all petrol pumps, but the Centre opposed the move, arguing E20 fuel supports sugarcane farmers

India set a 2025 target years ago for 20 per cent ethanol blending in fuel, called E20, as part of Prime Minister Narendra Modi's focus on clean energy

The Supreme Court is scheduled to hear on Monday a plea which has challenged the nationwide rollout of 20 percent Ethanol Blended Petrol (EBP-20), alleging that millions of motorists have been forced to use fuel not designed for their vehicles. The public interest litigation (PIL) is listed for hearing before a bench headed by Chief Justice B R Gavai on September 1. The plea, filed by advocate Akshay Malhotra, has sought a direction to the Ministry of Petroleum and Natural Gas to ensure availability of ethanol-free petrol at all fuel stations. It has also sought a direction to the authorities to mandatorily label ethanol content on all petrol pumps and dispensing units, making it clearly visible to consumers, and also to ensure that consumers were informed about ethanol compatibility of their vehicles at the time of fuel dispensing. The plea said the authorities be directed to conduct a "nationwide impact study on mechanical degradation and efficiency loss due to ethanol blended fu

Despite higher ethanol prices, India sticks to its blending mandate for energy security, farmer income, and sustainability

A DDGS glut is hurting oilmeal demand, lowering oilseed prices, and driving Indian farmers to grow more corn and rice instead of soybeans and groundnuts, despite New Delhi's push to boost output

Petroleum Minister Hardeep Singh Puri said last Friday that no engine failures had been reported since the E20 blend's rollout and that the performance impact was minimal, at around 1-3 per cent

India achieved the 20 per cent ethanol blending target (E20) around five years ahead of schedule, initially set for 2030

India's move to widespread E20 ethanol-blended petrol follows the footsteps of Brazil, the US, and Europe - offering key lessons in consumer acceptance, industry policy, and vehicle readiness

Refuting claims that E20 petrol affects fuel efficiency, the Ministry of Petroleum and Natural Gas highlighted E20 petrol's environmental benefits, improved engine performance

Ethanol can promote corrosion of metal components, and strip deposits from fuel systems, potentially clogging filters and lines. So higher the blend, higher the chances of old engines getting affected

Better prices above MSP, coupled with demand from ethanol producers for their fuel-blending programme, are pushing the popularity of maize

India has achieved its target of 20 per cent ethanol blending with petrol five years ahead of schedule, the Indian Sugar & Bio-energy Manufacturers Association (ISMA) said on Friday. The achievement represents dramatic growth from the modest 1.5 per cent blending rate when the program began in 2014 under Prime Minister Narendra Modi's administration, ISMA said in a statement. The ethanol blending program has delivered substantial economic and environmental benefits, according to ISMA data. Ethanol production surged from 38 crore litres in 2014 to 661 crore litres blended as of June 2025, while generating 698 lakh tonnes in carbon dioxide emission reductions. The program has provided significant financial benefits to India's agricultural sector, with farmers receiving Rs 1.18 lakh crore and distilleries earning Rs 1.96 lakh crore over the period. The initiative has also helped India save Rs 1.36 lakh crore in foreign exchange costs. "This achievement is a monumental leap for ...