Sugar Industry Urges Government to Set Clear Roadmap for Higher Ethanol Blending

India’s sugar industry is advocating for an increase in the ethanol blending target with petrol, proposing a roadmap to achieve 27% blending (E27) after reaching the 20% (E20) milestone. The Indian Sugar and Bioenergy Manufacturers Association (ISMA) and the Indian Federation of Green Energy (IFGE) have jointly called for a national ethanol mobility roadmap to ensure the optimal utilization of the country’s expanding ethanol production capacity.

Ethanol producers have collectively offered 17,760 million liters for the ethanol supply year 2025–26, surpassing the oil marketing companies’ (OMCs) annual requirement of approximately 10,500 million liters. This surplus capacity, if not utilized, could lead to idle infrastructure and underutilization of investments. Deepak Ballani, Director General of ISMA, emphasized that with over ₹40,000 crore invested and an annual production capacity exceeding 9,000 million liters from sugarcane, the industry is well-equipped to support blending beyond E20, up to E27 and even higher.

The proposed roadmap aims to provide clear guidelines for increasing blending levels, promoting the adoption of flex-fuel and hybrid vehicles, and advancing the development of second-generation (2G) and third-generation (3G) biofuels. Additionally, the industry has requested a reduction in the Goods and Services Tax (GST) on flex-fuel and hybrid vehicles to align with the tax rate on electric vehicles, thereby encouraging consumers to opt for ethanol-compatible vehicles.

The government’s support for the ethanol blending program has already resulted in significant benefits, including over ₹1.25 lakh crore paid to farmers since 2014–15 and savings of more than ₹1.44 lakh crore in foreign exchange by reducing crude oil imports. Implementing a clear and ambitious roadmap for higher ethanol blending could further enhance these outcomes, supporting rural economies and contributing to India’s energy security.