ISMA emphasised the critical role of biofuels in advancing India’s energy security and accelerating the country’s transition towards cleaner and more sustainable energy sources. India’s ethanol blending programme has emerged as a transformative initiative, significantly reducing reliance on imported fossil fuels while unlocking new growth opportunities for the sugar, bio-energy and agricultural sectors, and strengthening the rural economy.
The apex industry association said that the expansion of India’s ethanol blending programme and the development of a robust bioenergy ecosystem can play a strategic role in reducing dependence on imported fossil fuels while supporting the rural economy.
India’s ethanol blending programme has expanded rapidly over the past decade, with blending levels rising from around 1.5% in 2014 to nearly 18-19% in 2025, and the country achieving the 20% blending milestone ahead of schedule.
Ethanol supply has also increased significantly from 38 crore litres in 2014 to over 660 crore litres, generating Rs 1.18 lakh crore in payments to farmers and saving about Rs 1.36 lakh crore in foreign exchange through reduced crude oil imports.
Deepak Ballani, DG, ISMA, said, “Frequent fluctuations in global crude oil prices underline the vulnerability of oil-importing economies and reinforce the need to accelerate domestic energy alternatives. Biofuels, particularly ethanol derived from sugarcane, offer a practical pathway to reduce dependence on imported fossil fuels while strengthening India’s energy security.”
The energy industry has called for continued policy focus on strengthening the biofuel ecosystem, highlighting its role in diversifying India’s energy mix while creating long-term economic opportunities across the country’s agricultural value chain.
