ETHANOL BLENDING IN INDIA: PROGRESS, CHALLENGES, AND IMPACT
1. What is Ethanol Blending?
Ethanol is an alcohol produced mainly from crops like sugarcane, maize, and rice. When blended with petrol, it helps reduce oil imports and cut vehicular pollution.
Example: E20 fuel refers to petrol mixed with 20% ethanol.
In 2025, India successfully achieved E20 blending — five years ahead of its original 2030 target, marking a major milestone in its biofuel policy.
2. Why is the Government Promoting Ethanol Blending?
- Saves foreign exchange: India has saved over ₹26,000 crore by reducing crude oil imports.
- Reduces emissions: Between 2014–2021, ethanol blending helped cut around 19.2 million tonnes of carbon emissions.
- Boosts farmers’ income: Procurement of sugarcane and maize for ethanol provides a new revenue stream for farmers.
3. What Are the Challenges?
- Lower mileage: Ethanol has less energy content than petrol, meaning vehicles need slightly more fuel for the same distance.
- Price not reduced: Despite cheaper ethanol, petrol prices remain above ₹100 per litre in many states.
- Engine compatibility: Older vehicles are not designed for E20 or E85 fuel and may face performance issues.
4. Is It Safe for Vehicles?
- Older vehicles may require engine modifications or component upgrades.
- Automakers are developing ‘flex-fuel’ vehicles that can run on both petrol and ethanol blends.
- Example: Companies like Maruti Suzuki and Hyundai are producing cars compatible with E85 fuel (85% ethanol).
5. Is Ethanol Production Environment-Friendly?
- Currently, most ethanol in India comes from sugarcane molasses, a water-intensive crop.
- Experts recommend shifting toward second-generation (2G) ethanol — made from crop residues, bamboo, and wood chips — to enhance sustainability.
- This transition will help reduce pressure on water resources and prevent competition with food crops.
6. How Much Ethanol Is Being Used?
The data below shows India’s ethanol blending progress in recent years:
| Year |
Ethanol Used (Billion Litres) |
Blending % |
| 2019–20 |
1.7 |
5% |
| 2020–21 |
3.0 |
8.1% |
| 2021–22 |
4.3 |
10% |
| 2022–23 |
5.1 |
12.1% |
| 2023–24 |
7.1 |
14.6% |
| 2024–25* (till May) |
5.7 |
18.8% |
*Data till May 2025
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