ETHANOL BLENDING PROGRAMME
Drought threatens India's 20% ethanol blending target as food takes priority
India faces a significant challenge in its ethanol production due to the lowest monsoon rainfall experienced in over a decade. This situation has prompted New Delhi to prioritize food security over its ethanol blending targets. Estimates suggest that the ethanol blending ratio may decrease this supply year from 20% to around 15%. Producers are being squeezed by increased corn prices and reduced purchasing prices for ethanol.
India may reimpose broken rice export restrictions as prices cross $360 per tonne: IREF
India may reimpose restrictions on exports of 100% broken rice as international prices cross $360 per tonne and domestic demand from ethanol manufacturers and poultry-feed producers increases, the Indian Rice Exporters' Federation (IREF) has warned. No fresh curbs have been announced so far.
Nitin Gadkari says no challan for speeding up to 20% over the limit: What he told officials, when challans should be issued & what motorists must know
Nitin Gadkari has said motorists should not receive speeding challans for exceeding the applicable speed limit by up to 20%, while those crossing the threshold should be penalised. He also warned contractors over poor-quality highways, defended E20 petrol blending and called for domestic manufacturing of tunnel-boring machines as India plans major investments in tunnel infrastructure.
E20 criticism was a ‘paid campaign’, says Nitin Gadkari amid flex-fuel push
Nitin Gadkari stated that the uproar over E20 blending in petrol was a paid campaign against it. He emphasized that many vehicles have used blends without significant issues or failures reported. The minister reviewed highway condition complaints and assured improvements in the next two years. He also noted a significant increase in the national highway network since 2014, improving connectivity.
Govt should hike maize-based ethanol procurement rate by 9% to Rs 75 per litre: AIDA
The All India Distillers’ Association (AIDA) has approached the government with a request to elevate the maize-based ethanol procurement price to Rs 75 per litre. As maize prices continue to climb, AIDA expressed fears regarding the viability of grain-based distilleries and noted that current ethanol production plants are underutilized, which adversely affects profit margins.
Sugar stocks: Short-term pain is real; has the long-term case broken? 7 stocks from the sugar-ethanol ecosystem
Though this year's ethanol tender leaves sugar out, the long-term blending roadmap still points to rising ethanol use. The move is aimed at a short-term sugar-supply problem, not at ethanol itself. Check out Stock Reports Plus, powered by Refinitiv, for price targets of over 4,000 listed stocks along with detailed company analysis focusing on five key components – earnings, fundamentals, relative valuation, risk, and price momentum – to generate standardized scores. SR+ Reports is a complimentary offering to ETPrime members.
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India’s drought-hit maize crunch pits poultry, ethanol makers in ‘me first’ fight
Drought conditions have caused a significant decrease in maize supply, leading to competition among industries for access. Poultry producers, starch manufacturers, and ethanol plants are all vying for limited maize resources, exacerbating the situation. As maize prices continue to rise, the poultry industry has expressed concerns about potential feed shortages. Industry bodies have urged the government to prioritize maize for food production over fuel use.
Nitin Gadkari's ethanol challenge: 'Show me one damaged vehicle'; minister hits back at claims over blended petrol & reveals what farmers gained
Nitin Gadkari defended the Centre's ethanol-blending programme at the Bihar Investor Summit 2026, rejecting claims that ethanol-blended petrol damages vehicles. He said millions of vehicles have been running on blended fuel since 2022 and highlighted the policy's potential to reduce fuel imports while creating additional income opportunities for farmers through ethanol production.
Beyond the 7% headline: S&P maps the forces driving India’s next growth phase
India’s economy is set to grow 7% in FY27, according to S&P Global, which sees domestic demand, private investment, manufacturing, trade, energy security, renewable power, digital infrastructure and technology shaping India’s next phase of economic growth.
Crude surged. Why didn’t India’s petrol prices?
As the West Asia conflict drove up oil costs, India kept a much larger rise from reaching the pump. This explainer dives into how protection came from diversified supplies, a tax cut, losses absorbed by fuel retailers and an ethanol programme built before the crisis.
Nearly 7 billion litres without a market: Ethanol glut in India fuels search for new buyers
India’s ethanol industry is deluged with severe oversupply, with nearly 7 billion litres of capacity without a clear market. Installed capacity has reached about 20 billion litres, while E20 blending needs around 11 billion litres and non-fuel sectors consume another 3–3.5 billion litres.
Ethanol can help raise farmers' income and reduce fuel imports: Nitin Gadkari
Union minister Nitin Gadkari on Friday said greater ethanol use could boost farmers’ incomes and reduce India’s dependence on petroleum imports. Launching Madhya Pradesh’s new public bus service, he also backed flex-fuel, electric and hydrogen vehicles, waste-to-fuel projects and expanded public transport, while outlining plans to increase bus manufacturing and jobs.
Grain-based feedstocks power nearly 70% of India’s ethanol supplies in 2025-26
Grain-based feedstocks now supply nearly seventy percent of India's ethanol. Maize and surplus FCI rice are leading grain contributors to this supply. Sugar-based feedstocks also provide a substantial and important share of ethanol. India's ethanol capacity is expanding, requiring new utilization avenues. Future uses include Flex-Fuel Vehicles and Sustainable Aviation Fuel.
Govt backing flex-fuel vehicles to boost ethanol blending, says advisor to PM Tarun Kapoor
The government is supporting flexi-fuel vehicles to boost ethanol blending in petrol. This initiative aims to reduce crude oil imports and enhance energy security. New dispensing stations will be established across India over the next two years. Automobile companies are preparing to introduce flexi-fuel vehicles to the market. This move is critical amid global energy supply disruptions and rising oil prices.
Govt working to allow ethanol blending beyond E20 via flexi-fuel vehicles: PM Advisor
India plans to allow ethanol blending beyond the E20 level soon. Flexi-fuel vehicles will enable higher blending percentages for greater fuel independence. The government is also exploring biofuel additives for the diesel segment. Ethanol manufacturers are encouraged to diversify into compressed biogas production. Existing investments in the biofuels sector will face no uncertainty.
Ethanol blending: India should consider temporary cut to 15% from 20% target, says ICRIER
India should consider temporarily lowering ethanol blending in petrol to 15% during severe feedstock shortages or sharp food-price pressures, while retaining the 20% target as a long-term goal, an ICRIER paper said. It also recommended greater sugar imports, flexibility in ethanol imports and faster adoption of non-food-based second-generation ethanol.
Government should adopt flexible approach to ethanol-blended petrol programme: ICRIER paper
A research paper recommends flexibility in India's ethanol blending program targets. It suggests maintaining E20 as a long-term goal while allowing temporary E15 reductions. This approach would respond to agricultural shocks and manage economic costs effectively. The paper advocates for a flexible feedstock strategy to avoid food market pressure.
India’s farm policy needs a reset amid concerns over ethanol push, subsidies: Agri expert Devinder Sharma
Sharma warns that ethanol-led changes in cropping patterns may create an environmental problem over the longer term.
Low inventories, El Nino to keep sugar market tight through FY27: DAM Capital
The Indian sugar sector is likely to remain in a tight-supply situation through FY27 and possibly beyond, with low inventories, weather risks and firm global prices expected to keep domestic sugar prices elevated, according to a research report by DAM Capital Advisors.
Supreme Court dismisses PIL seeking disclosure of ethanol content in petrol at fuel pumps
The Supreme Court on Monday refused to entertain a public interest litigation seeking mandatory disclosure of the exact ethanol content in petrol sold at fuel pumps across India. The plea sought prominent displays at stations and the inclusion of ethanol percentage on fuel receipts and invoices issued to consumers nationwide.
Supreme Court to hear plea on ethanol labelling at petrol pumps on August 31
The Supreme Court will hear a petition on August 31 regarding ethanol labelling. The plea seeks mandatory disclosure of ethanol percentages on petrol dispensing nozzles. It also requests a public database detailing vehicle compatibility with ethanol blends. An expert committee will examine the real-world impact of E20 fuel. The court will consider consumer disclosure protocols and transition frameworks for vehicles.
BPCL says no decision to replace E20 with E10, as govt debates lower-blend option for older vehicles
Bharat Petroleum Corp Ltd has clarified that there are no plans to switch from E20 petrol to E10 fuel. Discussions are currently taking place about the feasibility of lower ethanol blends for older vehicles. The existing infrastructure could accommodate a transition if government policies evolve. However, creating a new petrol grade poses considerable logistical hurdles; hence, no definitive decision has been reached regarding the fuel blending framework.
No commitments relating to ethanol import from US for fuel blending under FTA talks: Govt
India's government has clarified trade pact negotiations with the US. No concessions were made regarding ethanol imports for fuel blending. Media reports suggesting policy changes are baseless and factually incorrect. India's ethanol blending program sources fuel exclusively from domestic producers. Therefore, large-scale US ethanol imports for blending are not planned.
No policy formulated to incentivize vehicles blended with over 20% ethanol: Heavy Industries Ministry
The Heavy Industries Ministry has no separate policy for flex-fuel vehicles. It has not studied incentivizing flex-fuel and electric vehicles. The government defends its E20 ethanol blending program extensively. This program strengthens energy security and cushions consumers from price volatility. Ethanol is produced from multiple approved feedstocks, ensuring farmer interests.
Ethanol blending programme safe, use of E20 won't affect vehicle insurance validity: Govt
India's ethanol blending program is safe and beneficial, the government assures, dispelling fears about E20 fuel invalidating vehicle insurance. This globally accepted practice, seen in countries like Brazil, has saved India over Rs 1.4 lakh crore in foreign exchange and boosted farmers' incomes. The initiative enhances energy security, cuts emissions, and supports cleaner mobility, with the government committed to its safe and transparent implementation.
Indian govt plans 5% ethanol blending in diesel
The government is exploring a new initiative to blend 5% ethanol in diesel, following its progress towards 20% ethanol blending in petrol. With ethanol blending in petrol at 15%, further trials are necessary for diesel, especially for BS-VI vehicles, to ensure vehicle performance, emissions, and fuel efficiency.
Monsoon woes: Sugarcane shortage likely to dilute ethanol blending
Erratic and uneven rainfall this year has affected sugarcane and rice cultivation in the country, which means less will be available for the distilleries. State-run Food Corporation of India (FCI) has already stopped supply of rice for ethanol production owing to an expected shortfall of rice for general consumption.
Ethanol blending with petrol seen at 8.3 per cent in 2020-21; blending achieved across all states
Addressing a webinar organised by Indian Sugar Mills Association (ISMA), HPCL ED C Sridhar Goud highlighted that blending is expected to jump to around 8.2-8.3 per cent in current ethanol supply year (December to November), from an average ethanol blending of 5 per cent in the last two years.
Subsidy will be based on actual sugar exports now
This has led to the accumulation of huge cane arrears and prompted the government to take remedial action including incentive on raw sugar export.
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