Call to Raise Ethanol Blending Target Beyond 20 Percent

13-Mar-2026 08:17 PM

New Delhi: The indigenous sugar industry has urged the Central Government to extend the target for ethanol blending in petrol beyond 20 percent, with a view to providing some relief to mills and distilleries.

Raising this issue during a meeting with the Union Food Minister, representatives of the sugar industry stated that ethanol is playing a pivotal role in bolstering energy security.

Furthermore, this initiative provides support to sugarcane growers and assists in reducing the nation's petroleum import bill.

According to the sugar industry, the country's total cumulative ethanol production capacity has increased significantly; however, due to limited production targets, a substantial portion of this capacity remains unutilized.

By increasing both ethanol production and the blending targets for petrol, it would become possible to reduce the nation's dependence on the import of crude mineral oil.

The industry asserts that since the target of blending 20 percent ethanol in petrol has already been achieved, there is now a need to raise it further.

This would provide a strong incentive for the industry to boost its production output. India also faces an urgent necessity to reduce its reliance on mineral oil imports, as an enormous amount of capital is currently being expended on them.

Notably, on March 11, the President and Director General of ISMA met with the Union Food Minister and apprised him of the various challenges confronting the sugar and bio-energy sectors. India, too, is being adversely affected by the prevailing situation in West Asia.