Archive · 11 Dec 2025
India Explores Biofuel Export and Blending
The Indian government is working on ways to use the extra ethanol that is being produced.
Right now, they mix some ethanol with petrol to make a cleaner fuel.
They want to mix even more ethanol with petrol and are also thinking about selling extra ethanol to other countries.
Some ethanol producers want the government to make a plan for the future before allowing more ethanol factories to be built.
Using ethanol in petrol has helped farmers get paid faster and has saved money and reduced pollution.
Currently, most of the ethanol used comes from grains like maize and rice, with some from sugarcane.
The Indian government is formulating a mechanism to address excess ethanol capacity by exploring exports and increasing biofuel blending with petrol.
Current ethanol production capacity is 17,000 million litres annually, with 11,000 million litres procured for 20% blending with petrol.
The government aims to achieve a 20% ethanol blending target and is discussing higher blending targets with stakeholders.
The Grain Ethanol Manufacturers Association seeks a cap on further investment until a long-term roadmap for ethanol blending is set.
Ethanol blending has resulted in economic benefits of over Rs. 1.36 lakh crore paid to farmers and Rs. 1.55 lakh crore in foreign exchange savings, along with significant environmental benefits.
- Who
- Indian government, ethanol producers, Grain Ethanol Manufacturers Association
- What
- Formulation of a mechanism to address excess ethanol capacity and explore exports and blending targets
- When
- Ongoing, with discussions and potential policy changes in the near future
- Where
- India
- Why
- To utilize excess ethanol capacity, achieve higher blending targets, and explore export opportunities
Government and Ethanol Producers
Grain Ethanol Manufacturers Association
Future Expansion of Ethanol Blending
Government and Ethanol Producers
The government is discussing with stakeholders to increase the share of biofuel blended with petrol and exploring ethanol exports to address excess capacity.
Grain Ethanol Manufacturers Association
The Grain Ethanol Manufacturers Association seeks a cap on further investment in the sector until the government sets a long-term roadmap for future expansion of the ethanol blending program.
- Current Ethanol Production Capacity
- 17,000 million litres annually
- Current Ethanol Procurement
- 11,000 million litres annually
- Ethanol Blending Target
- 20% blending with petrol
- Ethanol Blending Achievement (2024-25)
- 19.97%
- Economic Impact
- Rs. 1.36 lakh crore paid to farmers, Rs. 1.55 lakh crore foreign exchange saved
- Environmental Impact
- 79 million tonne CO2 reduction, 26 million tonne crude oil substitution
- Ethanol Sources (2025-26)
- 28% from sugar-based, 72% from grain-based (45% maize, 22% rice)
