India is making significant progress in its Ethanol Blended Petrol (EBP) Programme, marked by a strong rise in ethanol production and higher blending percentages across the country.
During the ongoing Ethanol Supply Year (ESY) 2024–25, Oil Marketing Companies (OMCs) have received a total of 904.84 crore litres of ethanol from November to September. The total contracted quantity was 1131.70 crore litres.
Of this, 598.14 crore litres of ethanol have been sourced from grains, while sugar-based feedstocks have contributed 306.70 crore litres.
Meanwhile, the average all-India ethanol blending percentage as of September 2025 stands at 19.17 per cent.
Source-wise procurement status of ethanol
(in Crore Litres)
| Raw Material | Total Contracted Qty. | Receipt Qty. |
|---|---|---|
| Sugarcane Juice / Sugar Syrup / Sugar | 197.72 | 162.01 |
| BHM (B-Heavy Molasses) | 136.89 | 129.77 |
| CHM (C-Heavy Molasses) | 15.36 | 14.92 |
| DFG (Damaged Food Grains) | 93.62 | 68.70 |
| SR (Surplus Rice) | 167.84 | 109.48 |
| Maize | 520.27 | 419.97 |
| Total | 1131.70 | 904.84 |
Company-wise procurement status of ethanol
(in Crore Litres)
| OMC | Contracted Qty. | Receipt Qty. |
|---|---|---|
| BPC | 330.35 | 261.05 |
| IOC | 490.57 | 396.72 |
| HPC | 302.63 | 241.38 |
| MRPL | 8.16 | 5.69 |
| Total | 1131.70 | 904.84 |
This rapid ethanol progress has significantly reduced India’s reliance on imported crude oil, resulting in substantial savings in foreign exchange.
Additionally, the Indian government has provided relief to ethanol producers by allowing sugar mills and distilleries to produce ethanol from sugarcane juice, sugar syrup, B-heavy molasses (BHM), and C-heavy molasses (CHM) without any restrictions for the Ethanol Supply Year (ESY) 2025–26.
To ensure a balance between ethanol production and sugar availability for domestic consumption, the Department of Food and Public Distribution (DFPD), in collaboration with the Ministry of Petroleum and Natural Gas (MoPNG), will regularly review the diversion of sugar for ethanol production.
Recently, Oil Marketing Companies (OMCs) invited bids for the supply of around 1050 crore litres of Denatured Anhydrous Ethanol for cycle 1 of ESY 2025-26. The response exceeded the required quantity of 1050 crore liters with over 1776 crore liters of offers submitted by the manufacturers across the country.
Out of total offers for 1776.49 crore litres, 471.63 crore litres is offered from sugarcane based feedstocks and 1304.86 crore litres is offered from grain based feedstocks.
