India's ethanol production rises to 2,000 crore litres from 421 crore litres, saving ₹1.90 lakh crore forex, cutting emissions and boosting farmer incomes through blending programme growth.
Key points
- Big Savings and Environmental Benefits
- Changes In PDS Rice Norms To Boost Ethanol
- Maize Emerging As Top Feedstock
- Flex-Fuel Vehicles To Drive Next Phase
- Frequently Asked Questions on Commercial Vehicles
India's ethanol blending programme has help the country to save more than ₹1.90 lakh crore in foreign exchange, by substituting over 310 lakh metric tonnes of crude oil between 2014-15 ethanol supply year and May 2026, government said. Ethanol production capacity also increase almost fivefold, from 421 crore litres in 2013-14 to around 2,000 crore litres in 2026, which shows how fast this sector is growing in the country.
Big Savings and Environmental Benefits
Table of Contents
| 1. Big Savings and Environmental Benefits |
| 2. Changes In PDS Rice Norms To Boost Ethanol |
| 3. Maize Emerging As Top Feedstock |
| 4. Flex-Fuel Vehicles To Drive Next Phase |
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Speaking at GEMA Ethanol Conclave 2026, Ashwini Srivastava, who is Joint Secretary at Department of Food & Public Distribution (DFPD), said that this programme has also helped to avoid nearly 930 lakh metric tonnes of carbon dioxide emissions. Along with this, it is also strengthening India's energy security, improving farmer incomes and creating new markets for agriculture produce, including support for future mobility like mini trucks, pickups, 3 wheelers and vans that may run on higher ethanol blends.
Changes In PDS Rice Norms To Boost Ethanol
Talking about the next phase of the programme, Srivastava said recent Cabinet decision to revise quality specification for rice supplied under Public Distribution System (PDS) is expected to increase availability of broken rice for industrial use, including ethanol production. Under new norms, permissible broken rice content in PDS rice has been reduce from 25% to 10%, which will improve rice quality for beneficiaries while also generating extra broken rice during milling for open market.
Maize Emerging As Top Feedstock
He also talk about the changing feedstock mix, saying that maize has become single largest source of ethanol supplied to oil marketing companies (OMCs). According to him, maize account for around 47% of ethanol supplied during 2024-25 ethanol supply year and continue to contribute about 36% in current supply year, showing growing role of grain-based ethanol along with sugar-based production.
Srivastava said the ethanol blending programme has also improve economics of sugar sector by creating alternative market for surplus sugar and sugarcane. This diversion of surplus sugar towards ethanol has enable more timely payments to sugarcane farmers, while reducing need for government support like buffer stock subsidies and export incentives.
Flex-Fuel Vehicles To Drive Next Phase
Referring to recent geopolitical tensions in West Asia, Srivastava said higher global crude oil prices have reinforce importance of expanding domestic ethanol production, to reduce India's dependence on imported crude oil. Looking ahead, he said promotion of flex-fuel vehicles (FFVs) and rollout of E85 fuel are expected to support next phase of ethanol programme, which could also benefit segments like mini trucks, pickups, 3 wheelers and vans by giving consumers more fuel flexibility.
He added that combination of higher production capacity, diversified feedstock and expanding flex-fuel mobility will further strengthen India's energy security, reduce crude oil imports and enhance rural incomes across the country.
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Frequently Asked Questions on Commercial Vehicles
1. How much has India's ethanol production capacity increased?
Ans: India's ethanol production capacity increased nearly fivefold, from 421 crore litres in 2013-14 to around 2,000 crore litres in 2026.
2. How much foreign exchange has India saved through ethanol blending?
Ans: India has saved more than ₹1.90 lakh crore in foreign exchange by substituting over 310 lakh metric tonnes of crude oil since 2014-15.
3. Which feedstock is now the largest source of ethanol in India?
Ans: Maize has emerged as the single largest source of ethanol, contributing around 36% of supply in the current ethanol supply year.
4. What changes were made to PDS rice norms to boost ethanol production?
Ans: The permissible broken rice content in PDS rice was reduced from 25% to 10%, increasing broken rice availability for ethanol production.
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