Topic
ethanol
Manufacturing India's transport, petroleum ministries disagree on E20 mileage loss: 2-6% vs 3-5%
India's road transport ministry and petroleum ministry have given different official estimates of the fuel-efficiency loss when E20 petrol is used in vehicles designed for E10. The transport ministry cited a 2-6% reduction based on an ARAI-SIAM-Indian Oil study, while the petroleum ministry said it is generally 3-5%. Both ministries pointed to driving conditions, habits and maintenance as key variables.
Commodities E20 Petrol Debate: Indian Government Debunks 7 Claims on Ethanol Blended Fuel, Impact on Mileage and Engines
The Indian government has issued a seven-point clarification refuting 'misleading claims' about E20 petrol, including that pre-2023 vehicles cannot use it and that 30 crore vehicles will become unusable. Minister Nitin Gadkari acknowledged a 2-6% fuel efficiency drop but said no engine failures have been recorded. Automotive companies including Maruti Suzuki and Toyota have voiced support.
Commodities Low Ending Stocks Will Likely Force India to Stop Sugar Export, Ethanol Diversion Early Next Season
India's sugar stocks are depleting, with total allocations falling 2.6% year-on-year. The government is probing stock levels and may curb ethanol diversion early next season to ensure adequate domestic supply during festive months.
Commodities Lower maize acreage and sugar stock uncertainty shift focus to rice for ethanol in India
With maize acreage in top five producing states falling over 13% and sugar stocks expected very low at season end, India's ethanol blending programme is likely to depend more on rice. The government's target of 20% ethanol blending requires about 1,100 crore litres, and reduced broken-rice share in official stocks could boost feedstock availability. Fresh kharif arrivals are expected to strengthen supply.
Commodities Grain-based ethanol gains momentum: What it means for India's blending programme
India's ethanol blending programme has crossed 717 crore litres cumulative supplies by June 2026, with grain-based ethanol contributing nearly 480 crore litres. The shift to maize and surplus grains provides resilience against crop failures, supports rural industry, and advances energy security.
Commodities India’s open market rice sale norms will likely help meet 20% ethanol blending target
The Indian government revised its standard operating procedure for sale of rice to ethanol distilleries for the 2026-27 supply year, allocating 7.2 million tonnes from FCI stocks and fixing prices at ₹2,320 per quintal till October 31 and ₹2,390 after. Trade experts say the move will help meet the 20% ethanol blending target while utilizing aged stocks, though large diversion may affect non-basmati rice exports.
Commodities India Says Premium Petrol to Stay Ethanol-Free, No Plan to Blend Beyond 20%
The Indian government has confirmed that premium petrol grades from state-run retailers will remain ethanol-free due to their niche performance-additive composition. Additionally, there is no current proposal to raise ethanol blending in regular petrol beyond the existing 20% or to reintroduce E0/E10 fuels, pending further scientific studies.
Commodities India Maintains Ethanol-Free Premium Petrol, No Plan to Exceed E20 Blending
India's government confirmed that premium petrol grades will remain ethanol-free and there is no plan to increase ethanol blending beyond the current 20% (E20) level. Minister Suresh Gopi stated the decision is based on scientific validation and logistical considerations.
Commodities India Uses 3.9M Tonnes FCI Rice, 6.8M Tonnes Maize for Ethanol Till June 2026
India has used 3.9 million tonnes of surplus FCI rice and 6.8 million tonnes of maize for ethanol production till June 2026 in the current Ethanol Supply Year (ESY 2025-26). Minister of State for Petroleum & Natural Gas Suresh Gopi stated that the 20% ethanol blending target has not affected food crop availability or food security, and only surplus foodgrains are diverted. The government also reported that PSU oil marketing companies procured 705.43 crore litres of ethanol for ₹49,577.36 crore in the same period.
Commodities After cars, now ethanol may make its way to your kitchen: Plans in the works to introduce it as mainstream cooking fuel alongside LPG
India's Ministry of Petroleum and Natural Gas is developing a policy framework to introduce ethanol as a mainstream household cooking fuel alongside LPG. The initiative aims to utilize the country's surplus ethanol production capacity of over 20 billion litres annually, reduce LPG import dependence, and strengthen energy security.
Commodities India ring-fences 72 lakh tonnes of FCI rice for ethanol production in 2026-27
India's food ministry has allocated 72 lakh tonnes of rice from FCI stocks for ethanol production in the 2026-27 supply year at ₹2,390/quintal, up from 52 lt in 2025-26. An additional 55 lt of broken rice will be sold via e-auction. The move supports higher blending targets and reduces fossil fuel imports.
Commodities India Minister Puri Defends E20 Biofuel as ARAI Data Shows 2-6% Drop in Fuel Efficiency
Union petroleum minister Hardeep Singh Puri defended the government's E20 ethanol-blending programme, calling misinformation 'rumours' while welcoming constructive criticism. Controlled tests by ARAI and OEMs showed a 2-6% drop in fuel consumption with E20 versus E10. Toyota Kirloskar Motor said damage in a viral video was due to contaminated fuel, not ethanol.
Commodities Ethanol Producers' Body BIEPA Supports E20 Fuel, Calls Misinformation Unfounded
The Bharat Independent Ethanol Producers Association (BIEPA) has publicly supported India's mandatory E20 fuel, dismissing claims of engine damage and poor mileage as scientifically unsupported. The body urged consumers to rely on verified information from government and industry sources.
Commodities E20 Controversy: Why India's Ethanol Blending Roadmap Is Back in Spotlight
India's nationwide rollout of mandatory 20% ethanol-blended petrol (E20) in April 2025 has triggered a political row, with opponents citing a 2021 NITI Aayog report that recommended a phased transition. The controversy intensified after Attorney General R Venkataramani called E20 an 'experiment' during a Supreme Court hearing, raising concerns over vehicle compatibility and fuel efficiency.
Manufacturing GEMA President Challenges Critics to Prove Ethanol-Blended Fuel Damages Vehicles
Grain Ethanol Manufacturers Association (GEMA) President C.K. Jain has challenged critics to prove that ethanol-blended petrol damages vehicle engines, stating that no such incidents have been reported by authorized service centres. He acknowledged a 3-5% drop in mileage but argued that the benefits of reduced pollution and foreign exchange savings outweigh the loss. Jain also rebutted claims of excessive water usage, noting that only 5 litres of water are needed to produce one litre of ethanol, with ongoing efforts to reduce that to 3.5 litres.
Commodities India Reaches 20% Ethanol Blending Milestone as Govt Issues FAQs on E20 Fuel Concerns
India has reached 20% ethanol blending in petrol as of April 2025, five years ahead of target. The government released FAQs to address public concerns about fuel economy, performance, and vehicle damage, detailing the long history and supply build-up behind the policy.
Commodities India's E20 Petrol Costlier to Produce Than Pure Petrol at Current Crude Prices, Government Says
The Indian petroleum ministry stated that E20 petrol is currently costlier to produce than pure petrol at prevailing global crude oil prices around $70 per barrel, but the ethanol blending program has saved over Rs 1.97 lakh crore in foreign exchange and reduced crude imports. The economics reverse when crude rises to $120-130 per barrel. The government dismissed claims of engine damage from E20 fuel.
Commodities E20 Fuel Safe for Older Vehicles, Say Industry Experts as India Hits 20% Blending Target
Industry executives from Toyota Kirloskar Motor, Maruti Suzuki, and Hero MotoCorp assured that E20 ethanol-blended petrol is safe for vehicles manufactured before the mandate, citing extensive testing. India achieved 20% ethanol blending by December 2025, five years ahead of its original target, helping reduce crude oil imports.
Trade Indian Government Denies Offering E20 Petrol Exports to Bhutan, Calls Reports Incorrect
The Indian Ministry of Petroleum and Natural Gas dismissed reports that Bhutan had refused to import E20 petrol from India, stating no such offer was ever made. The clarification followed allegations by the Congress party that Bhutan, Nepal, Bangladesh, and Sri Lanka had rejected India's ethanol-blended fuel. The government also defended the fuel's reliability, citing extensive testing by Indian institutions.
Commodities ISMA defends E20 fuel, cites scientific evidence; remains silent on mileage drop claims
The Indian Sugar and Bio-Energy Manufacturers Association (ISMA) has dismissed public concern over E20 ethanol blended petrol, stating that the conversation should be based on scientific evidence and official clarifications. While automakers claim mileage drop is marginal (3-3.5%), social media users report a 20-30% reduction. The government and industry bodies defend the fuel, citing emissions cuts and foreign exchange savings of over Rs 1.4 lakh crore.
Commodities Distilleries Supply 68% of Contracted 1,048 Crore Litres Ethanol in Eight Months
As of June 2026, Indian distilleries have supplied 717 crore litres of ethanol, fulfilling 68% of the 1,048 crore litres contracted by oil marketing companies for the Ethanol Supply Year 2025-26. Maize-based ethanol dominates at 36%, followed by FCI rice and sugarcane juice. Grain-based distilleries account for 67% of supplies, while sugar-based units have achieved 82% fulfilment of their contracts.
Commodities Oil marketing companies hesitant to expand E85 rollout amid E20 petrol debate
Indian oil marketing companies are reluctant to expand E85 fuel outlets due to poor demand from a previous E100 pilot, pricing disadvantages, and limited flex-fuel vehicle penetration. The government aims for 500 flex-fuel stations by December 2026 and 5,000 by 2027, but only 48 currently dispense E85. A CEEW report notes ethanol is 15-25% more expensive on an operating cost basis than petrol.
Commodities Sugar Industry Renews Push for Dedicated E100 Fuel Pumps Amid Ethanol Glut
The Indian Sugar & Bio-Energy Manufacturers Association (ISMA) has renewed its demand for the government to allow ethanol distilleries to set up dedicated E100 fuel dispensing stations. The proposal, first made in February 2023, aims to scale up flex-fuel mobility and ease financial stress from excess ethanol capacity. The government has yet to decide, amid concerns over E20 blending programme efficiency.
Commodities India Sets Rice at Rs 2,320/quintal for Ethanol, Wheat at Rs 2,585-2,600 for Millers Under OMSS 2026-27
The Indian government has released the Open Market Sales Scheme (OMSS) policy for 2026-27, setting rice at Rs 2,320/quintal for ethanol distilleries and wheat at Rs 2,585-2,600/quintal for millers. The policy, effective until June 30, 2027, includes tiered pricing for various buyers and introduces a separate category for rice with 10% broken grain content. Allocation to state governments is fixed at 48 lakh tonnes, while no specific quantity is earmarked for other buyers amid concerns over a potential super El Nino impacting foodgrain production.
Manufacturing India’s E100 ethanol push could trigger ₹50,000 crore auto industry investment
India's push for E100 ethanol could trigger ₹37,000-50,000 crore in auto industry investment, including ₹22,000-30,000 crore in R&D and ₹15,000-20,000 crore in localisation and manufacturing upgrades. However, flex-fuel vehicles are expected to account for only a low single-digit share of the market by 2030, and the investment must compete with ongoing electrification spending.
Commodities India Defends E20 Petrol Against Viral Claims, Pushes Ethanol Roadmap Towards E100 Ecosystem
The Ministry of Petroleum and Natural Gas defended E20 petrol against viral claims, calling them misleading and unsubstantiated. India has achieved 20% ethanol blending ahead of schedule and is now pushing towards an E100 ecosystem with flex-fuel vehicles, aiming to reduce crude oil imports and boost farmer incomes.
Commodities India likely won't export sugar for years as El Nino, ethanol squeeze supply
India, once the world's second-largest sugar exporter, is expected to have little surplus for export for at least three more seasons as El Nino weather conditions threaten cane production and rising ethanol demand squeezes supply. The twin pressures are poised to keep millions of tons of sugar off the world market, tightening supplies for importers across Asia, Africa and West Asia and supporting benchmark prices in London and New York.
Commodities India Waives Excise Duty on Ethanol-Blended Petrol to Boost Cleaner Fuel Use
India has waived excise duty on ethanol-blended petrol (E22, E25, E27, E30) to promote cleaner fuel and reduce crude oil imports. The government plans to establish 500 ethanol fuel stations by end-2026, with initial rollout in Delhi-NCR, Pune, Mumbai, and Nagpur. The move comes as global crude prices surged above $100 per barrel due to the ongoing Middle East conflict, pushing domestic fuel prices up by over Rs 7.5 per litre.
Commodities From E20 to E85: India’s strategic leap in sustainable fuel blending
India's ethanol blending programme has evolved from a fragmented initiative into a comprehensive national strategy integrating energy security, agriculture, and industry. The coordinated rollout of E20 and introduction of E85 fuels, backed by inter-ministerial cooperation and feedstock diversification, is reshaping the country's fuel landscape.
Commodities India Clears E100 Fuel Framework, Accelerating Ethanol Vehicle Rollout and Impor
India has approved the regulatory framework for 100% ethanol (E100) as a vehicular fuel, enabling the commercial deployment of ethanol-powered cars and two-wheelers. The move, announced by Union Minister Nitin Gadkari, aims to reduce India's dependence on imported crude oil (over 85% imports) and create new demand for agricultural feedstocks, while giving automakers regulatory certainty to invest in flex-fuel platforms.
India ethanol push needs uniform policies and consumer trust: AIDA
India's Ethanol Blending Programme requires standardised state-level taxes and consumer education to succeed, according to the All India Distillers’ Association. With installed capacity of 2,000 crore litres and demand at 1,434 crore litres, the industry holds a surplus of 566 crore litres. Excise duty exemptions on higher blends (E22 to E30) aim to curb crude oil imports, but consumer concerns over mileage persist.
Commodities India Exempts Higher Ethanol Blend Grades from Excise Duty
The Central Board of Indirect Taxes and Customs (CBIC) has issued notifications exempting ethanol blended petrol grades E22, E25, E27, and E30 from central excise duties, provided excise duty has already been paid on petrol and GST on ethanol. The move mirrors existing treatment for lower blends and aims to avoid double taxation, according to officials. Joint Secretary Sujata Sharma stated it is a preliminary prerequisite for eventual introduction of higher blends after extensive testing.
Commodities India Considers Delaying Higher Ethanol Mandate
India's government is considering delaying the increase in ethanol blending from E20 to E25 due to concerns about vehicle compatibility. Most vehicles manufactured before 2025 are not fully compliant with higher ethanol blends, potentially impacting mileage and maintenance costs.
Commodities India's Ethanol Push: E85 Fuel Price Drops by Rs 20/Litre
India is set to reduce the price of E85 fuel by Rs 20 per litre as part of its ethanol adoption strategy. This move aims to compensate for the lower energy content of ethanol and reduce fossil fuel imports.
Commodities Ethanol Prices and Flex Fuel Vehicles: A Market Shift
Ethanol demand is poised to rise as India reduces the cost of high-ethanol blended fuels and flex fuel vehicles. The government's efforts to cut GST rates and promote FFVs aim to decrease crude oil imports.
Commodities India's Ethanol Expansion: 5,000 Stations by 2027
India is set to expand its ethanol fuel network with 5,000 stations by 2027, reducing reliance on imported fossil fuels. The initiative aims to boost ethanol-compatible vehicles and benefit farmers.
Commodities India's Ethanol Expansion Reshapes Agriculture and Energy Markets
India's ethanol blending initiative has significantly increased farmland dedicated to fuel production, reshaping agricultural practices and impacting energy markets. The shift from sugarcane to grain-based ethanol, particularly maize and rice, has altered crop choices and raised concerns over food availability.