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 ...
The Maharashtra government has allowed the use of food grains such as maize and rice to produce ethanol through the dual feed method, to be used for blending with petrol. The ethanol thus produced shall not be used for liquor production, said an order issued by the state home department. The central and state governments earlier allowed the use of sugarcane juice and molasses for ethanol production. With the latest decision, distilleries can now operate even during the season when sugarcane is not available. Welcoming the move, B B Thombre, chairman of the West Indian Sugar Mills Association (WISMA), said, "We had requested the government to allow ethanol production from food grains during the (sugarcane) off-season." Thombre, who also heads Natural Sugars and Allied Industries, a private sugar mill, said the decision will help stabilise maize prices and generate year-round demand. "Farmers will benefit significantly, especially with maize fetching Rs 2,800 per quintal," he said,
India's biodiesel blending rate was at a mere 0.60 per cent in FY25, against a target of 5 per cent by 2030, largely because of limited investments and challenges in collection of used cooking oil
India's sugar sector has grown to become a Rs 1.3 lakh crore industry, and it is driving rural prosperity and energy security, Union Food Minister Pralhad Joshi said on Thursday. The minister was addressing the 'Cooperative Sugar Industry Conclave 2025' & 'National Efficiency Award Ceremony'. "Under the PM Shri @narendramodi ji's leadership, India's sugar sector has grown into a Rs 1.3 lakh crore industry (annually), driving rural prosperity, energy security and green power through reforms like record ethanol blending and Atmanirbharta in fuel," Joshi said on a social media post. It is inspiring to see how the sector's evolution is shaping a sustainable, self-reliant future for India, he added. The event was organised by National Federation of Cooperative Sugar Factories Limited. It was established in 1960 to build a strong and vibrant co-operative sugar sector in India. All cooperative sugar factories and state cooperative sugar federations across the country are its ...
Wheat bran prices drop to almost ₹20 a kg from nearly ₹25 in May 2025
Encouraged by the Union Food Ministry's interest subsidy scheme, Grainspan Nutrients has invested Rs 520 crore to set up two grain-based ethanol plants in Ahmedabad and is supplying green fuel for blending with petrol. The two plants, which use maize and rice as feedstock, have a total installed capacity of 350 kilolitres per day. Grainspan's first grain-based ethanol plant, located at Bhamsara Village in Ahmedabad district, became operational in May 2023 with a capacity of 110 kilolitres per day. This plant was Gujarat's first grain-based ethanol facility. Enthused by the success, the company last month commissioned its second facility, which has been built at a cost of Rs 360 crore with an installed capacity of 240 kilolitres per day at the same location. The company supplies ethanol to Oil Marketing Companies (OMCs) under the Ethanol Blending Programme (EBP). "There are three grain-based ethanol plants in Gujarat, of which two facilities are being operated by us. We were the fi
Closing sugar stocks now estimated at 4.8 million tonnes in 2024-25
India is examining a US request to open ethanol imports for fuel use as part of broader trade negotiations, sparking concerns from domestic producers over policy reversal
India must promote maize production and introduce more dynamic pricing for grain ethanol to unlock the full potential of fuel blending, according to a new report. The report, Unlocking Rs 35,000 crore for farmers The Untapped Potential of Grain Ethanol, also calls for uninterrupted supply of damaged, broken and surplus rice from the Food Corporation of India (FCI) and expansion of the domestic market for Distiller's Dried Grains with Solubles (DDGS). Rising maize prices have made ethanol production costlier and less competitive, potentially discouraging investment in the sector. The report, by management consulting firm Primus Partners and Grain Ethanol Manufacturers Association (GEMA), recommends incentivising farmers to shift to maize cultivation by providing high-yield seeds, fertilizers, and irrigation infrastructure. In the last Ethanol Supply Year (November-October), grain ethanol producers faced losses as procurement prices remained unchanged despite increasing maize costs,
Petroleum Minister Hardeep Singh Puri announced the country had already achieved 19.6 per cent ethanol blending and was confident of reaching 20 per cent by next month
India is looking at increasing its target to blend ethanol with petrol to more than 20 per cent and has formed a committee under the NITI Aayog for this, Petroleum Minister Hardeep S Puri said on Wednesday. Addressing the Advantage Assam 2.0 business summit in Guwahati, he said 19.6 per cent blending has already been achieved. "We will be looking at more than 20 per cent blending of biofuel. Already a NITI Aayog group has been set up and they are looking into it," he said. "We had set a target of 20 per cent blending by 2026, but already achieved 19.6 per cent. I am sure we will touch 20 per cent next month," he added. Puri said that the country has a capacity of 1,700 crore litre of blending, and already 1,500 crore litre are being utilised. With India spending USD 150 billion on different types of fuel imports, he said that one area where the attention is lacking is green hydrogen. "The green hydrogen price is presently USD 4.5. If you can bring it closer to USD 2.5, there will
Ethanol in India is derived primarily from sugarcane, a crop that is not only water-intensive but is also being increasingly diverted to ethanol production