A delegation of ethanol industry representatives from Bihar, led by CA Kunal Kishore, Founder–Director of InvestAid India and Secretary General of the Bihar Ethanol Association, recently met the Union Petroleum Secretary, Ministry of Petroleum and Natural Gas, Government of India, to raise concerns over ethanol allocation under the Ethanol Supply Year (ESY) 2025–26.
The delegation highlighted a significant shortfall in ethanol allocation to Bihar-based distilleries, despite substantial investments made by the sector, established operational capacities, and long-term commitments undertaken to support the national Ethanol Blended Petrol (EBP) Programme. Industry members emphasized that the current allocation levels could adversely impact plant viability and slow the momentum built by Bihar as an emerging ethanol-producing hub.
According to the delegation, the discussion was constructive and focused on ensuring that the objectives of the EBP Programme are achieved in a manner that is fair, transparent, and supportive of states that have emerged as key ethanol-producing hubs.
The delegation underscored the need for equitable consideration of Bihar’s ethanol ecosystem, noting that policy support and timely allocations are key for sustaining investor confidence and achieving India’s broader energy security and biofuel goals.
Members of the industry delegation included Dr Dilip Patel, Chairman of Patel Group of Industries; Abinash Verma, Promoter of Eastern India Biofuels Pvt Ltd; Ajay Singh, Chairman of Bharat Plus Ethanol Private Limited; and Rakesh Gupta, Chief Operating Officer of Micromax Biofuels Pvt Ltd.
Industry representatives expressed optimism that the concerns raised would be duly examined and addressed by the Ministry in the interest of balanced regional growth and the successful implementation of the EBP Programme nationwide.
During the current Ethanol Supply Year (ESY) 2025–26, ethanol blending in petrol reached 20 per cent in November 2025. In the same month, Oil Marketing Companies (OMCs) received 45.5 crore litres of ethanol under the Ethanol Blended Petrol (EBP) Programme. Official data indicates that a total of 89.6 crore litres of ethanol was blended into petrol in November 2025.
In the previous ESY 2024–25, OMCs blended 1,022.8 crore litres of ethanol, achieving a average blending level of 19.2 per cent.
The OMCs have allocated around 1,048 crore litres of ethanol against 1,776 crore litres of offers submitted by manufacturers across the country for ESY 2025–26 (Cycle 1). OMCs had invited tenders for the supply of 1,050 crore litres of ethanol for ESY 2025–26.
In the allocation, maize holds the largest share at 45.68 per cent (around 478.9 crore litres), followed by FCI rice at 22.25 per cent (around 233.3 crore litres), sugarcane juice at 15.82 per cent (around 165.9 crore litres), B-heavy molasses at 10.54 per cent (around 110.5 crore litres), damaged food grains at 4.54 per cent (around 47.6 crore litres), and C-heavy molasses at 1.16 per cent (around 12.2 crore litres).
Currently, India’s total ethanol production capacity as of November 2025 is about 1,990 crore litres, and the industry is calling for an increase in ethanol blending beyond 20 per cent, stating that capacities are underutilised.
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