In the first 4 months of ethanol supply year 2020-21, India has reached more than 7.2 per cent. This is the first time India has reached this level. This puts the country right on its course of achieving the target of 10 per cent blending by 2022.

Current Scenario

  • If oil marketing companies lift the ethanol they had contracted for, then by November 2021, India shall reach an average blending of 8 per cent. So far, the best ever ethanol blend with petrol in India was 5.2 per cent.
  • Some Indian states of Karnataka, Gujarat, Goa, Maharashtra, Uttar Pradesh, Punjab, Haryana, Uttarakhand, Delhi, Daman and Diu, Himachal Pradesh, 9.5 per cent to 10 per cent ethanol is being blended with petrol. These states and UTs are so close to achieving 2022 target.


According to ethanol policy, the sugar companies should deliver the contracted ethanol to the nearest Oil Marketing Company depot. The Oil Marketing Company are to pay transportation charges. Here, the problem is that the sugar companies are not getting full transport reimbursement. This is because, the base rate for transport was fixed in October 2020, that is, before the current increase in fuel price.

About Ethanol Blended Programme

The Ethanol Blended Programme was launched in 2003 by Government of India. The Oil Marketing Company are advised to acquire ethanol on the following priority order under the programme

  • Sugarcane
  • B-Heavy molasses
  • C-Heavy molasses
  • Damaged food grains


  • It can be produced from maize, sugarcane, wheat, etc. In India, ethanol is mainly produced by fermentation process.
  • As ethanol consists of oxygen, it allows easy and complete combustion of the fuel.
  • Ethanol is considered as a renewable fuel as ethanol is produced from plants that use the power of sun.
  • Once blended ethanol cannot be separated from petrol.
  • Ethanol can be mixed with gasoline to form different blends.
  • However, the major disadvantage is using ethanol is that as ethanol can absorb moisture from atmosphere it can cause issues with vehicle engines.

India’s new record in ethanol blend with petrol India’s new record in ethanol blend with petrol