As India charts the next phase of its ethanol-blending programme, the country’s distillery industry believes the answer lies not in imports but in expanding domestic production and consumption.
Speaking to Autocar Professional, Vijendra Singh, President of the All India Distilleries Association (AIDA), said he does not see India ever importing ethanol from the United States, despite America being the world’s largest ethanol producer and exporter. According to Singh, such a move would run counter to the very objective of India’s ethanol programme, which is aimed at reducing dependence on imported fuels while creating value within the domestic economy.
“I don’t think it will ever happen. Importing ethanol from the US or any other country is counterproductive. It is not in the interest of our country,” Singh said.
The comments come at a time when the US continues to expand ethanol exports to markets across North America, Europe and Asia. Industry observers often refer to the US as the ethanol industry’s equivalent of a global oil powerhouse due to its dominant production and export position. However, Singh argues that India should remain focused on building a self-sustaining domestic ethanol ecosystem rather than replacing crude oil imports with imported biofuels.
“If we stop importing petrol and start importing ethanol, what have we achieved?” he asked, adding that policymakers have remained clear about supporting domestic production.
E25 Likely To Be The Next Step
While India has already achieved nationwide E20 rollout, discussions have increasingly shifted towards what comes next. According to Singh, E25 is likely to emerge before E30, although both could develop in parallel depending on how quickly vehicle manufacturers certify higher-blend compatible products.
“I think we will see E25 first. E25 and E30 will go hand in hand as OEMs bring compliant vehicles and certify them for higher blends,” he said.
At the same time, he expects E85 and E100 to evolve as a separate stream built around flex-fuel vehicles rather than as a direct extension of the current blending programme.
According to Singh, higher-blend fuels and flex-fuel vehicles will coexist with conventional ethanol-blended petrol, giving consumers multiple fuel options based on affordability and vehicle compatibility.
Flex-Fuel Ecosystem Needs Policy Support
Singh also called for policy support for flex-fuel vehicles, drawing parallels with the incentives that helped accelerate electric vehicle adoption in India.
He argued that governments could consider tax and registration concessions for flex-fuel vehicles, making both the vehicles and fuel more attractive to consumers.
“The way support was provided to EVs, similar support can help flex-fuel vehicles. The customer should get the benefit of both a cheaper vehicle and cheaper fuel,” he said.
According to him, economics will ultimately determine adoption. As lower-cost fuel becomes available, consumer demand for compatible vehicles will follow, encouraging automakers to bring more products to market.
Rural Production Model Offers Economic Benefits
A key pillar of Singh’s argument is ethanol’s potential to create local economic activity.
Unlike petroleum products, which require crude imports, refining and long-distance transportation, ethanol production is often located close to agricultural regions. Singh believes this decentralised production model can create value for farmers, processors and rural communities while reducing logistics intensity.
“The raw material is produced here, processed here and consumed here. Farmers benefit, industry benefits, employment increases and foreign exchange is saved,” he said.
He further argued that wider adoption of ethanol-based fuels could contribute to lower vehicular emissions in urban centres, particularly if flex-fuel vehicles become a meaningful part of future mobility.
Export Opportunity Before Domestic Demand Catches Up
While firmly opposing imports, Singh acknowledged that India could become an exporter of ethanol in the near term if production outpaces domestic demand.
Countries such as Nepal, Bhutan, Sri Lanka, Myanmar, Vietnam and the Philippines could emerge as potential export destinations, particularly while India’s own flex-fuel vehicle fleet remains relatively small.
However, he believes the long-term trajectory points towards rising domestic consumption as E25, E30 and flex-fuel vehicles gain wider acceptance.
“In the short term there may be surplus ethanol that can be exported, but in the long term India itself will consume much more ethanol,” he said.
More Flex-Fuel Models Expected
On the automotive side, Singh expects more automakers to introduce flex-fuel vehicles over the next few years, particularly once consumers begin seeing a clear economic advantage.
He noted that the technology is already widely deployed in Brazil, where flex-fuel vehicles dominate passenger vehicle sales.
“The technology already exists. Companies do not have to reinvent the wheel. Once one manufacturer takes the lead and the market responds, others will follow,” he said.
For India’s ethanol industry, the message is clear: the next phase of the country’s biofuel journey should be driven by domestic production, domestic consumption and domestic economic value creation rather than imported alternatives. As discussions move beyond E20 towards E25, E30 and flex-fuel vehicles, industry stakeholders appear keen to ensure that India’s ethanol economy remains firmly rooted within its own borders.