The Indian Sugar & Bio-energy Manufacturers Association (ISMA) has stated that India has achieved its target of 20% ethanol blending programme (EBP) with petrol five years ahead of schedule.
The early achievement of the 20% blending target, originally set for 2030, demonstrates India’s commitment to reducing dependence on fossil fuel imports while supporting rural economic development. The achievement represents dramatic growth from the modest 1.5% blending rate when the programme began in 2014 under Prime Minister Narendra Modi’s administration.
ISMA said that the EBP has delivered substantial economic and environmental benefits. Ethanol production surged from 380 million litres in 2014 to 6,610 million litres blended as of June 2025, while generating 69.8 million tonnes in carbon dioxide emission reductions.
The programme has provided significant financial benefits to India’s agricultural sector, with farmers receiving ₹1.18 trillion and distilleries earning ₹1.96 trillion over the period. The initiative has also helped India save ₹1.36 trillion in foreign exchange costs.
“This achievement is a monumental leap for India’s energy independence and rural prosperity,” said Deepak Ballani, Director General of ISMA.
“The government’s unwavering policy direction and visionary leadership have not only made this national success possible five years ahead of schedule, but have also set a powerful precedent for our collective future in green energy.” The sugar industry has played a central role in India’s ethanol economy, supplying biofuel derived from sugarcane juice, B-heavy molasses and other agricultural by-products, ISMA added.
India to finalise standards for 27% ethanol blending by August-end
The Union Minister for Road Transport and Highways Nitin Gadkari announced that India will establish the standard for 27% ethanol blending by the end of August. He made the statement while addressing the International Sugar Expo 2025, held as part of the 83rd Centennial Annual Convention of the Sugar Technologists’ Association of India (STAI).
Gadkari pointed out that Brazil has already achieved 27% blending and emphasised the need for India to catch up.
