Ethanol Blending in Petrol Surpasses 18%, with Nearly Equal Contributions from Sugarcane and Grains
During the ongoing ethanol supply year 2024-25 (November-October), the ethanol blending in petrol has reached 18.08 percent as of March 9.
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India has achieved remarkable progress in its ethanol blending program. As part of an initiative to reduce reliance on fossil fuels and promote bio fuels, the blending of ethanol in petrol has risen to over 18 percent. Sugarcane-based ethanol accounts for the largest share, with a nearly equal contribution from grain-based ethanol.
Industry sources report that during the ongoing ethanol supply year 2024-25 (November to October), the ethanol blending rate in petrol reached 18.08% by March 9. Over this period, a total of 302.70 crore liters of ethanol was consumed nationwide. Of this, 151.46 crore liters were derived from sugarcane, while a slightly lower 151.24 crore liters came from grains.
This year, grain-based ethanol saw its highest supply from maize, contributing 130.26 crore liters, while approximately 21 crore liters were produced from damaged grains. On the sugarcane side, 123.21 crore liters of ethanol were supplied from sugarcane juice, and 25.38 crore liters were produced from B-heavy molasses for blending with petrol.
In the previous year, 2023-24, the ethanol blending level had reached 15%. During that period, grain-based ethanol significantly outperformed sugarcane-based ethanol in volume, largely because the government had imposed a ban on producing ethanol from sugarcane juice. This year, with no such ban in effect, the supply of ethanol from grains and sugarcane has been almost equal, despite a decline in sugarcane production.
The central government has set an ambitious target of achieving 20% ethanol blending by 2025-26. To support this goal, it is promoting ethanol production through various measures, placing significant emphasis on maize-based ethanol. A structured system has also been established for ethanol procurement and price determination.
In 2013-14, oil companies blended a total of 38 crore liters of ethanol, a figure that soared to 707 crore liters by 2023-24. The ethanol blending level in petrol, which was just 1.53% until 2014, had climbed to 15% by 2024.
The central government asserts that over the past decade, ethanol blending has resulted in savings of more than 1.13 lakh crore rupees in foreign exchange and has replaced approximately 193 lakh tons of crude oil with ethanol.
