India’s ethanol production capacity has witnessed a dramatic rise, surging over four times in the past eleven years reaching 1,810 crore litres annually.
Policy Push Powers Ethanol Expansion
The remarkable growth has been driven by a series of favourable policy measures aimed at promoting biofuel blending, reducing import dependence, and boosting farmer incomes. In 2013, India’s ethanol distillation capacity stood at just 421 crore litres. The government’s proactive support has since transformed the sector into a key component of the nation’s energy and agricultural strategies.
Blending Levels
As a result of increased capacity, ethanol blending in petrol has jumped from a mere 1.53% in 2013 to nearly 19% today. The significant rise has saved the country over ₹1.10 lakh crore in foreign exchange, while also contributing to cleaner fuel usage.
Boost for Farmers and Rural Economy
The ethanol drive has delivered tangible benefits to sugarcane and foodgrain farmers, offering them a reliable market and improved price realisation. As reported by ptinews.com, the expanding ethanol production economy is also supporting rural employment, reducing environmental impact, and aligning with India’s commitment to sustainable energy and self-reliance.
