In January 2025, India reached a record 19.6 percent ethanol blending in petrol - up from just five percent in 2019, putting India on course to achieve the 20 percent target well ahead of the original 2030 deadline, under the Ethanol Blended Petrol (EBP) Programme .

Launched to reduce reliance on crude oil imports and promote environmentally sustainable fuel, the EBP Programme has expanded significantly. Ethanol-blended petrol supplied by public sector oil marketing companies (OMCs) rose from 3,413 crore litres in 2019-20 to an estimated 4,828 crore litres in 2023-24. This momentum has propelled India to become the world’s third-largest ethanol producer, trailing only the United States and Brazil.

With strong policy backing, infrastructure development, and financial incentives, the programme has significantly scaled ethanol output. A key milestone has been the transition from predominantly sugarcane-based ethanol to grain-based sources, such as maize.

Grain-based ethanol procurement accounted for 51 percent in 2023-24, up sharply from 9.51 crore litres in 2018-19 to 70.21 crore litres in 2021-22. This shift ensures year-round ethanol availability and offers a dependable market for surplus grains, providing farmers with a stable revenue stream. 

To meet the 20 percent blending target, India requires 1,016 crore litres of ethanol, a target comfortably within reach given its current production capacity of 1,700 crore litres.