India is intensifying its efforts to enhance ethanol blending in petrol, aiming to surpass the current 20% target.

The government may increase ethanol in petrol beyond 20%, says Minister Hardeep Singh Puri. A NITI Aayog committee is exploring the feasibility.

As of January 2025, India achieved an 18% ethanol blending rate, a significant rise from 12-13% earlier in the year. The country is on track to meet the 20% blending target by 2025-26, with plans already underway to explore blending rates beyond this threshold. 

India is exploring the possibility of increasing ethanol blending in petrol beyond 20%, as revealed by Union Petroleum Minister Hardeep Singh Puri on February 26, 2025. A NITI Aayog committee has been set up to evaluate the feasibility of this move. Currently, the country has reached an 18% ethanol blend and is on track to achieve the 20% target by 2025-26.

Puri emphasized that fossil fuel companies are committed to reaching net-zero emissions, aligning with India’s push for cleaner energy. To support ethanol production, the government has extended the Pradhan Mantri JI-VAN Yojana and is ramping up domestic ethanol output. However, this transition is impacting agriculture, driving up corn imports and prompting an extension of the sugar export ban.

However, the increased focus on ethanol production has led to a shift in agricultural dynamics. India has transitioned from being a net exporter to a net importer of corn, as more corn is diverted for ethanol production. This change has resulted in higher local corn prices, affecting poultry producers and leading to calls for policy adjustments to mitigate the impact on related industries. 

Additionally, to ensure sufficient domestic sugar supplies and bolster ethanol output, India plans to extend its ban on sugar exports for the second consecutive year. This measure is expected to influence global sugar markets, potentially leading to increased prices. 

These developments underscore India’s commitment to enhancing ethanol blending as part of its broader strategy to achieve energy independence and reduce carbon emissions.