India has recorded significant progress in its Ethanol Blended Petrol (EBP) Programme, marked by sharp growth in both ethanol production and blending levels.
According to sources, during the ongoing Ethanol Supply Year (ESY) 2024–25, Oil Marketing Companies (OMCs) have received a total of 1002.99 crore litres of ethanol from November 2024 to October 2025.
Of this, 686.99 crore litres of ethanol have been sourced from grains, while sugar-based feedstocks have contributed 316 crore litres.
In a major achievement, India has reached a 20% ethanol blending level in petrol by 2025, surpassing its target by five years.
The accelerated progress has helped cut dependence on imported crude oil, leading to significant foreign exchange savings and reinforcing India’s transition toward a cleaner and more self-reliant energy future.
OMCs have allocated around 1048 crore litres of ethanol against 1776 crore litres of offers submitted by manufacturers across the country for ESY 2025-26 – Cycle 1. OMCs had invited tenders for the supply of 1050 crore litres of ethanol for ESY 2025-26.
In the given allocation, maize holds the largest share at 45.68 percent (around 478.9 crore litres), followed by FCI rice at 22.25 percent (around 233.3 crore litres), sugarcane juice at 15.82 percent (around 165.9 crore litres), B Heavy Molasses at 10.54 percent (around 110.5 crore litres), damaged food grains at 4.54 percent (around 47.6 crore litres), and C Heavy Molasses at 1.16 percent (around 12.2 crore litres).
Recently, 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, and C-heavy molasses without any restrictions for the 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.
