A recent report released by the International Energy Agency (IEA) states that by 2026, India would become the third-largest market for ethanol in the world after the US and Brazil, reports Financial Express.
IEA said that ethanol demand in the country has tripled to 3 billion litres between 2017 and 2021.
As per the report, the annual global demand for Biofuel is likely to grow by 28% from 2021 to 2026 taking it to 186 billion litres, the demand in Asia is likely to grow by 30% during this period which will overtake Europe in production of Biofuel.
The interest shown by the government is playing a major role in boosting ethanol demand in India, said the report.
India has advanced the target of meeting 20% ethanol blending to 2025 than the earlier set target by 2030, announced Prime Minister Narendra Modi in June 2021.
India is taking various steps to increase ethanol production. It will not only help in saving capital but also reduce the import of crude oil.