India Achieves 20% Ethanol Blending Target 5 Years Ahead of Schedule, Boosting Energy Independence and Rural Prosperity

India has achieved its 20% ethanol blending target with petrol five years ahead of schedule, according to the Indian Sugar & Bio-energy Manufacturers Association (Isma). Ethanol production surged from 380 million liters in 2014 to 6,610 million liters as of June 2025, generating 69.8 million tonnes in carbon dioxide emission reductions. The program has provided significant financial benefits to India's agricultural sector, with farmers receiving Rs 1.18 trillion and distilleries earning Rs 1.96 trillion. The sugar industry has played a central role in India's ethanol economy, supplying biofuel derived from sugarcane juice, B-heavy molasses, and other agricultural by-products.

India has achieved its 20% ethanol blending target with petrol, five years ahead of the 2030 schedule, according to the Indian Sugar & Bio-energy Manufacturers Association (ISMA). The achievement represents a significant milestone in the country's efforts to reduce dependence on fossil fuel imports and support rural economic development.

Ethanol production has surged from 380 million litres in 2014 to 6,610 million litres as of June 2025, generating 69.8 million tonnes in carbon dioxide emission reductions. The ethanol blending program has delivered substantial economic and environmental benefits, according to ISMA data.

The program has provided significant financial benefits to India's agricultural sector. Farmers have received Rs 1.18 trillion, while distilleries have earned Rs 1.96 trillion over the period. The initiative has also helped India save Rs 1.36 trillion in foreign exchange costs.

"This achievement is a monumental leap for India's energy independence and rural prosperity," said Deepak Ballani, Director General of ISMA. "The government's unwavering policy direction and visionary leadership have not only made this national success possible five years ahead of schedule but have also set a powerful precedent for our collective future in green energy."

The sugar industry has played a central role in India's ethanol economy, supplying biofuel derived from sugarcane juice, B-heavy molasses, and other agricultural by-products.

The early achievement of the 20% blending target demonstrates India's commitment to reducing dependence on fossil fuel imports while supporting rural economic development. This success is a testament to the effectiveness of government policies and the resilience of the domestic ethanol industry.

References:

[1] https://www.business-standard.com/industry/news/india-achieves-20-ethanol-blending-target-5-yrs-ahead-of-schedule-isma-125072500536_1.html
[2] https://www.tribuneindia.com/news/clean-energy/india-achieves-20-ethanol-blending-in-petrol-five-years-ahead-of-schedule
[3] https://economictimes.indiatimes.com/industry/energy/oil-gas/india-achieves-20pc-ethanol-blending-target-5-years-ahead-of-schedule-isma/articleshow/122899040.cms