India’s ethanol blending programme has helped the country save more than ₹1.90 lakh crore in foreign exchange by substituting over 310 lakh metric tonnes of crude oil between the 2014-15 ethanol supply year and May 2026, according to the government. Ethanol production capacity also increased nearly fivefold from 421 crore litres in 2013-14 to around 2,000 crore litres in 2026
Speaking at the GEMA Ethanol Conclave 2026, Ashwini Srivastava, Joint Secretary, Department of Food & Public Distribution (DFPD), said the programme has also helped avoid approximately 930 lakh metric tonnes of carbon dioxide emissions, while strengthening India’s energy security, improving farmer incomes and creating new markets for agricultural produce.
Highlighting the next phase of the programme, Srivastava said the recent Cabinet decision to revise the quality specifications for rice supplied under the Public Distribution System (PDS) is expected to increase the availability of broken rice for industrial applications, including ethanol production. Under the revised norms, the permissible broken rice content in PDS rice has been reduced from 25% to 10%, improving rice quality for beneficiaries while generating additional broken rice during milling for the open market.
He also highlighted the changing feedstock mix, saying maize has emerged as the single largest source of ethanol supplied to oil marketing companies (OMCs). According to him, maize accounted for around 47% of ethanol supplied during the 2024-25 ethanol supply year and continues to contribute about 36% in the current supply year, reflecting the growing role of grain-based ethanol alongside sugar-based production.
Srivastava said the ethanol blending programme has significantly improved the economics of the sugar sector by creating an alternative market for surplus sugar and sugarcane. The diversion of surplus sugar towards ethanol production has enabled more timely payments to sugarcane farmers while reducing the need for government support measures such as buffer stock subsidies and export incentives that were previously used to manage excess sugar production.
Referring to the recent geopolitical tensions in West Asia, Srivastava said higher global crude oil prices have reinforced the importance of expanding domestic ethanol production to reduce India’s dependence on imported crude oil and strengthen the country’s energy security.
Looking ahead, he said the promotion of flex-fuel vehicles (FFVs) and the rollout of E85 fuel are expected to support the next phase of India’s ethanol blending programme by enabling higher ethanol use while offering consumers greater fuel flexibility. He added that the combination of higher production capacity, diversified feedstock and expanding flex-fuel mobility is expected to further strengthen India’s energy security, reduce crude oil imports and enhance rural incomes.