State-run oil marketing companies plan to increase ethanol procurement by 40%, reaching 9.73 billion litres during the current ethanol supply year (November 2024–October 2025). The initiative aligns with India’s goal of achieving 20% ethanol blending in petrol by 2025, reducing dependence on imported oil.
Shift Toward Grain-Based Ethanol
For the 2024-25 ethanol supply year, companies will source 3.91 billion litres from sugarcane-based raw materials and 5.82 billion litres from grain-based processors.
As a result, the share of grain-based ethanol in the blending programme will rise to 60%. This is a significant increase from 27% in 2022-23.
The oil ministry reports that the national ethanol blending rate for 2023-24 stood at 14.6%, utilizing 7.07 billion litres of ethanol.
State Oil Firms Lead Ethanol Procurement
State-run oil companies, which control about 90% of petrol retail, purchased 6.79 billion litres for the blending programme in the 2023-24 supply year.
The government’s supportive policies have accelerated grain-based ethanol production by setting attractive ethanol prices, providing capital support for new production facilities, and ensuring assured offtake agreements.
Government Policies Expand Ethanol Production Beyond Sugar-Producing States
As reported by projectstoday.com, the government now allows maize and surplus or damaged rice for ethanol production.
The decision has significantly expanded supply sources.
As a result, ethanol production is no longer limited to traditional sugar-producing states like Uttar Pradesh, Maharashtra, and Karnataka.
More states can now participate in the ethanol blending programme, increasing overall production capacity and strengthening India’s energy security.
