India has achieved its target of 20 per cent ethanol blending with petrol five years ahead of schedule, the Indian Sugar & Bio-energy Manufacturers Association (ISMA) said on Friday.
The achievement represents dramatic growth from the modest 1.5 per cent blending rate when the program began in 2014 under Prime Minister Narendra Modi’s administration, ISMA said in a statement.
The ethanol blending program has delivered substantial economic and environmental benefits, according to ISMA data.
Ethanol production surged from 38 crore litres in 2014 to 661 crore litres blended as of June 2025, while generating 698 lakh tonnes in carbon dioxide emission reductions.
The program has provided significant financial benefits to India’s agricultural sector, with farmers receiving Rs 1.18 lakh crore and distilleries earning Rs 1.96 lakh crore over the period. The initiative has also helped India save Rs 1.36 lakh crore in foreign exchange costs.
“This achievement is a monumental leap for India’s energy independence and rural prosperity,” said Deepak Ballani, Director General of ISMA.
“The government’s unwavering policy direction and visionary leadership have not only made this national success possible five years ahead of schedule but have also set a powerful precedent for our collective future in green energy.”
The sugar industry has played a central role in India’s ethanol economy, supplying biofuel derived from sugarcane juice, B-heavy molasses and other agricultural by-products, ISMA said.
The early achievement of the 20 per cent blending target, originally set for 2030, demonstrates India’s commitment to reducing dependence on fossil fuel imports while supporting rural economic development, the industry association added.>
