 "Ethanol")
India is all set to come out with a fresh target of 30 per cent for ethanol blending in petrol by 2030, as it already touched 20 per cent by March this year, according to sources.
Though 20 per cent was initially set for 2030, it was later brought forward to the 2024-25 ethanol supply year (November 1-October 31).
In the supply year 2023-24, ethanol blending in petrol touched an average of 14.6 per cent. This was a significant increase from 12.06 per cent in supply year 2022-23.
Officials at the Petroleum and Natural Gas Ministry confirmed that inter-ministerial discussions have agreed to raise the national blending target to 30 per cent by the end of the decade.
During the past 10 years, ethanol blending in petrol by public sector oil marketing companies (OMCs) has resulted in around savings of more than ₹1.2 trillion in foreign exchange and crude oil substitution of about 19.3 million metric tonnes.
According to the Indian Sugar and Bio-energy Manufacturers Association (ISMA), this has also led to a payment of ₹1.04 trillion to farmers in the past 10 years.
“It is no secret that our long-term policy envisions raising the 20 per cent target. Primary discussions have been on whether to apply a staggered approach or go all out with a single target,” an official said.
“Last year, blending was around 10-14 per cent. This year, we have already done around 19-20 per cent. Our diversion from the sugar sector this year is going to be around 3.5 million tonnes, up from 2.1 million tonnes last year. This is five years earlier than the target for 2030,” said Deepak Ballani, director general of ISMA.
Carbon emissions have also been lowered by 62.6 million metric tonnes in the past decade and enabled crude oil substitution of 20 million tonnes.
In 2014, ethanol-blended petrol was sold from 27,900 retail outlets of OMCs. This has increased to all retail outlets across the country in 2024.
As of February-end, the government has achieved a 19.6 per cent ethanol blending in all petrol sold nationally. And, 20 per cent blending has been reached since then, a government official said.
Official data shows that interventions by the Centre have resulted in 7.07 billion litres of ethanol being blended with petrol in the 2023-24 supply year.
Till that date, supplies of around 9.96 billion litres of ethanol have been allocated by OMCs.
Of this, around 66 per cent is expected to come from grains, with the balance from sugarcane.
Sugar mills have supplied 1.51 billion litres of ethanol while grain-based distilleries also supplied an almost equal amount. In total, around 3.02 billion litres of ethanol have been supplied to OMCs till March 9, 2025.
“Sugar companies have invested heavily in distilleries to meet the rising demand. We have also requested the government to consider E100 fuel in many outlets,” Ballani added.
