India achieved ethanol blending of 19.2% during ESY 2024-25
During ESY 2024-25, India achieved 19.2% ethanol blending in petrol, reaching 19.97% in October 2025 with 77 crore litres in storage. OMCs received 1,003 crore litres and consumed 1,022 crore litres. Government allocations include 52 LT FCI rice and 40 LT sugar for ethanol. Average ethanol cost was ₹71.55 per litre. Ethanol blending has generated ₹1,36,300 crore for farmers, saved ₹1,55,000 crore in foreign exchange, reduced CO2 by 790 lakh tonnes, and substituted 260 lakh tonnes of crude oil. Annual distillation capacity is 1,950 crore litres.
Ethanol blending in petrol during the ethanol supply year (ESY) 2024-25 (November 2024-October 2025) stood at 19.2 per cent. In October 2025, it stood at 19.97 per cent with more than 77 crore litres of the commodity in storage at the end of the month.
While PSU Oil Marketing Companies (OMCs) received around 1,003 crore litres of ethanol during ESY 2024-25, around 1,022 crore litres of the commodity was consumed to achieve 19.2 per cent blending with petrol.
The National Policy on Biofuels, after being amended in 2022, advanced the target of 20 per cent blending of Ethanol in petrol from 2030 to Ethanol Supply Year 2025-26 (November 2025 to October, 2026).
OMCs achieved the target of 10 per cent ethanol blending in petrol in June 2022, which was five months ahead of the target during ESY 2021-22. India achieved a blending of 12.06 per cent in ESY 2022-23 and 14.60 per cent in ESY 2023-24.
The price of ethanol produced from sugarcane juice/ syrup was ₹65.61 per litre in ESY 2024-25. The rate of ethanol produced from B heavy molasses (BHM) and C heavy molasses (CHM) was ₹60.73 per litre and ₹57.97 per litre, respectively.
While ethanol produced from damaged food grains was priced at ₹64 per litre in ESY 2024-25, the prices of ethanol produced from maize was ₹71.86 per litre.
In order to ensure availability of feedstock for ethanol production to achieve 20 per cent ethanol blending target by October 2026, the government approved allocation of 52 Lakh Tonnes (LT) of surplus Food Corporation of India (FCI) rice for ethanol production, each for the ESY 2024-25 and ESY 2025-26 (up to June 30, 2026) and diversion of 40 LT of sugar for ethanol production in ESY 2024-25.
For ESY 2024-25, the average procurement cost of ethanol stands at ₹71.55 per litre (inclusive of transportation and GST), which is higher than the cost of refined petrol.
In ESY 2025-26, OMCs invited bids for the supply of 1,050 crore litres of Ethanol. The government has increased the prices of FCI rice-based ethanol in the current supply year.
The price of ethanol produced from surplus rice sourced from FCI has been fixed at ₹60.32 per litre for ESY 2025–26, compared to ₹58.50 per litre for ESY 2024–25, an increase of around 3 per cent. The revision corresponds to the increase in the rate of surplus rice for ethanol from FCI.
According to the supply schedule, 100 crore litres are to be supplied in November 2025, and 200 litres in December 2025 and January 2026.
The remaining is divided into three quarters—February-April 2026 (280 crore litres), May-July 2026 (250 crore litres) and August-October 2026 (220 crore litres).
The Ethanol Blended Petrol (EBP) Programme led to payment to farmers to the tune of more than ₹1,36,300 crore from ESY 2014-15 up to October 2025. Besides, savings of over ₹1,55,000 crore of foreign exchange, net CO2 reduction of approximately 790 lakh tonne and substitution of more than 260 lakh tonnes of crude oil.
The country’s annual ethanol distillation capacity to around 1,950 crore litres at present.
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Source : The Hindu Business line
