The Indian Sugar & Bio-Energy Manufacturers Association (ISMA) and Indian Federation of Green Energy (IFGE) has issued a joint appeal to the government to announce a ‘National Ethanol Mobility Roadmap’, outlining a clear trajectory for ethanol blending beyond E-20. The consortium also seeks GST rationalisation on Flex-Fuel Vehicles (FFVs) and Smart Hybrid Vehicles, along with consumer incentives similar to those offered under the FAME scheme for EVs, to sustain the momentum of India’s ethanol revolution, according to the press release.
This strategic push comes in the wake of India’s success in achieving E-20 ethanol blending five years ahead of schedule, a milestone that has garnered global recognition and reaffirmed the country’s commitment to sustainable mobility and energy security. The accomplishment reflects strong government leadership and the coordinated efforts of the sugar, bioenergy, and automotive sectors. This cross-sector collaboration has placed India among the leading global examples of sustainable fuel transition.
At the heart of this progress lies the sugar industry, which has invested around ₹40,000 crore to create an ethanol production capacity exceeding 900 crore litres per annum, making it well-equipped to support blending levels beyond E-20. These investments have boosted farmer incomes by ensuring steady demand for sugarcane, enabled quicker clearance of cane arrears, improved mill cash flows, generated lakhs of rural jobs, and promoted research in high-yield feedstocks for sustainable ethanol production.
Deepak Ballani, Director General of the Indian Sugar & Bio-Energy Manufacturers Association (ISMA), said, “India’s sugar sector has risen to the challenge and delivered on its ethanol promise ahead of schedule. Industry believes that sustaining this ethanol revolution now depends on policy continuity. With the ethanol industry offering 1,776 crore litres against the Oil Marketing Companies’ requirement of 1,050 crore litres, the sector is fully prepared to support ethanol blending at 27%, demonstrating its readiness to meet higher national blending targets. Without a defined roadmap beyond E-20 blending, production capacities could remain underutilised, leading to idle investments, reduced mill revenues, and a slowdown in future biofuel innovation. A phased, time-bound roadmap is therefore critical to provide clarity on blending milestones, vehicle adaptation standards, and ethanol diversification into advanced biofuels such as 2G/3G ethanol, Sustainable Aviation Fuel (SAF), and green chemicals.”
Additionally, in the absence of an increase in procurement price of ethanol from B-heavy molasses and juice for the last 3 years, it has created financial pressure that may slow the growth and threatens to erode these gains. That’s why a clear roadmap beyond E-20 is essential to maintain the momentum, ensure fair utilisation of installed capacity, and continue uplifting farmer incomes.
Dr. Pramod Chaudhari, President of IFGE, remarked, “India’s ethanol success reflects the strength of industry-government collaboration. To sustain this progress, it is vital to declare a National Ethanol Mobility Roadmap 2030 with clear targets beyond E-20. We must integrate vehicle adaptation norms, promote advanced biofuels, and diversify into other green chemical pathways. This will secure ongoing investments, encourage R&D in next-generation technologies, and position India as a leader in sustainable bio-energy.”
The joint appeal also highlights the role of Flex-Fuel Vehicles and Smart Hybrids in bridging India’s transition from traditional internal combustion engines to cleaner mobility solutions. These vehicles, which can operate efficiently on different blends upto E-100, have the potential to considerably reduce vehicular emissions and petroleum dependence. However, the current GST rate of 43% levied on FFVs and Smart Hybrids remains a major disincentive compared to EVs, which enjoy a much lower GST rate of 5%. With the right policy direction and support for FFVs, India can reduce its annual oil import bill by ₹50,000–₹75,000 crore, enhance energy independence under the Atmanirbhar Bharat vision, and stay firmly on course to meet its Net Zero 2070 commitment.
Reaffirming its commitment, ISMA stated that the sugar and bio-energy industries remain central to supporting our farmers and India’s transition toward cleaner and self-reliant energy. ISMA with IFGE, emphasised that ongoing support for policies will turn current interest in ethanol into lasting benefits for the country while also providing steady incomes for farmers, boosting industry growth, and building a strong base for clean transportation in India.
