India is steadily advancing in the ethanol sector, with both production and blending levels rising each year and manufacturing capacity expanding. This progress is reshaping the nation’s energy landscape while boosting economic development and promoting sustainable growth in rural areas.
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.
This accelerated progress has helped reduce dependence on imported crude oil, resulting in significant foreign exchange savings and strengthening India’s transition towards a cleaner and more self-reliant energy future.
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.
