India Achieves 20 Per Cent Ethanol Blending In Petrol Five Years Ahead Of 2030 Target
India has achieved 20% ethanol blending in petrol in 2025, five years ahead of the 2030 target. Ethanol output surged from 38 crore litres in 2014 to 661.1 crore litres, saving ₹1.36 lakh crore in forex, paying ₹1.18 lakh crore to farmers, and cutting 698 lakh tonnes of CO₂ emissions.
India has met its 20 per cent ethanol blending target in petrol in 2025—five years ahead of the original target set for 2030, Union Minister Hardeep Singh Puri announced on Wednesday (23 July).
Puri highlighted that ethanol blending has climbed from a mere 1.5 per cent in 2014 to 20 per cent in 2025, marking a nearly 13-fold jump in just over a decade.
He noted that the ethanol push has improved energy security while delivering major economic and ecological dividends.
Ethanol output grew from 38 crore litres in 2014 to 661.1 crore litres by June 2025.
This ethanol expansion helped India save nearly Rs 1.36 lakh crore in foreign exchange by curbing crude imports.
Meanwhile, distilleries earned Rs 1.96 lakh crore, and farmers received Rs 1.18 lakh crore, strengthening both the biofuel sector and rural economy.
The environmental payoff has also been substantial, with ethanol-blended fuel cutting 698 lakh tonnes of CO2 emissions—an important step toward India’s climate targets.
“India hits 20% ethanol blending in petrol five years ahead of target. From just 1.5% in 2014 to 20% in 2025, this clean energy leap has: >> Saved ₹1.36 lakh crore in forex >> Paid ₹1.18 lakh crore to farmers >> Cut 698 lakh tonnes of CO₂ emissions. PM @narendramodi ji’s vision is powering energy security, farmer income and climate progress,” Puri said in a post on X.
The ethanol for blending comes mainly from crops such as sugarcane, underscoring the scheme’s alignment with farm sector support.
To further incentivise ethanol production, the Union Cabinet recently approved a price hike for molasses-based ethanol for the current marketing season.
The new procurement rates will apply to OMCs under the EBP Programme for ESY 2024–25, spanning 1 November 2024 to 31 October 2025.
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Source : Swarajya
