New Delhi: Grain-based ethanol manufacturers have urged the government to slightly increase ethanol blending in petrol beyond the current 20 per cent level to address low capacity utilisation and support the industry, Financial Express reported.
The Grain Ethanol Manufacturers Association (GEMA) has suggested raising blending by 2 to 3 percentage points, saying it can be done without affecting the automobile sector. The industry body has also proposed exploring ethanol-based cooking stoves as a supplementary energy source alongside LPG.
GEMA president C K Jain said ethanol production from grains such as rice and maize is currently operating at capacity utilisation levels ranging from 40 per cent to 90 per cent across states. He warned that underutilisation could put investments, including bank funding, at risk.
According to the industry, increasing blending levels could lead to oil marketing companies procuring an additional 2,000 million litres of ethanol, helping improve plant utilisation.
At present, oil marketing companies procure between 11,000 and 12,000 million litres of ethanol annually from sugarcane, rice and maize to meet the 20 per cent blending target. However, the country’s installed production capacity stands at around 17,000 million litres.
For the 2025–26 ethanol supply year, oil companies have agreed to procure about 10,500 million litres, with 7,500 million litres expected from grain-based producers and the remainder from sugar-based units. Industry sources indicated that another round of procurement for 2,000 million litres is likely.
Out of nearly 400 ethanol manufacturing units in the country, about 250 are grain-based, mainly using rice and maize.
In a separate communication to Prime Minister Narendra Modi, biofuel producers have also proposed the use of ethanol-based cooking stoves for households as well as commercial establishments such as restaurants, street vendors and institutional kitchens.
GEMA has recommended pilot projects in collaboration with government departments, oil companies and institutions to assess the technical feasibility, safety and cost-effectiveness of such cooking solutions. The move, it said, could help expand clean cooking options, improve energy security and create additional demand for domestically produced biofuels.
Meanwhile, the Ministry of Petroleum and Natural Gas has said it is working on a plan to address excess ethanol production capacity in coordination with the food ministry. Measures under consideration include easing ethanol exports and preparing a roadmap to further increase biofuel blending in petrol.
