Why in news?
India’s roadmap for increasing ethanol blending attracted attention in August 2025 because the country is on track to achieve 20 % blending (E20) by 2025 and has announced a target of 27 % (E27) by 2030. Policymakers are balancing the goals of energy security, farmer welfare and environmental sustainability.
Evolution of the programme
The Ethanol Blended Petrol (EBP) programme began in 2003 with a modest 5 % blending mandate. It has since expanded rapidly: India achieved 10 % blending in 2022 and 12 % in 2023. Ethanol is produced mainly from molasses, sugarcane juice, damaged food grains and increasingly from maize and surplus rice.
Benefits
- Energy security: Blending reduces crude oil imports and saves foreign exchange. India currently imports about 85 % of its crude needs.
- Environmental gains: Ethanol burns cleaner than petrol, cutting carbon monoxide and particulate emissions.
- Farmers’ income: Diversifying crops into ethanol feedstock provides a steady market for sugarcane and maize growers. Second‑generation ethanol from agricultural residues such as straw could create rural jobs.
Challenges
- Food security: Diverting grains to fuel can cause shortages and price spikes. India must ensure that ethanol production does not undermine the Public Distribution System.
- Water stress: Sugarcane is water‑intensive. Expanding its cultivation in water‑scarce regions may exacerbate droughts.
- Vehicle compatibility: Engines not designed for high ethanol blends may suffer corrosion and reduced mileage. Flex‑fuel vehicles and fuel‑efficient engines are needed.
- Infrastructure: Ethanol blending requires storage tanks, pipelines and blending facilities across the country, which involves significant investment.
Way forward
To make higher blending sustainable, India should diversify feedstocks to include sweet sorghum, cassava and cellulosic biomass; promote drip irrigation and drought‑tolerant crop varieties; incentivise production of flex‑fuel vehicles; and ensure transparent pricing so that both oil marketing companies and farmers benefit. Long‑term success will depend on balancing food, water and energy needs.