India Achieves 20% Ethanol Blending Target Ahead of Schedule, Highlights Energy and Farm Gains

India has achieved its 20% ethanol blending (E20) target in petrol during 2025-26 , five years ahead of schedule, marking a major milestone in the country's clean energy and biofuel strategy. The government said the Ethanol Blended Petrol (EBP) Programme has strengthened energy security , reduced dependence on imported crude oil, lowered emissions, and enhanced farmers' incomes.

Ethanol blending has increased from less than 1.5% in 2013-14 to 20% in 2025-26 . Ethanol procurement has grown from 38 crore litres to a projected over 1,200 crore litres , while production capacity has expanded nearly fivefold from 421 crore litres in 2014 to about 2,000 crore litres in 2026 .

According to the government, the programme has saved over ₹1.90 lakh crore in foreign exchange , substituted more than 310 lakh metric tonnes of crude oil , reduced around 930 lakh metric tonnes of CO₂ emissions , and generated over ₹1.60 lakh crore in additional earnings for farmers since 2014-15.

The government also sought to dispel misinformation surrounding E20, stating that it does not cause widespread engine damage, invalidate vehicle warranties, or significantly reduce fuel efficiency . It said E20 was approved only after extensive testing by SIAM, ARAI, Indian Oil Corporation (IOCL) , and automobile manufacturers .

Industry leaders from Toyota Kirloskar Motor, Maruti Suzuki, Hero MotoCorp, and Engineers India Limited endorsed E20 as a safe and well-tested fuel , citing extensive service data that found no evidence of higher engine damage. The government also rejected claims that ethanol is simply sugarcane juice mixed with petrol, attracts insects, or requires excessive water, clarifying that f uel-grade ethanol is produced through industrial fermentation and strict quality standards.

Noting that countries including the United States, Brazil, Japan, Canada, Thailand, and several European nations have adopted ethanol blending, the government said the EBP Programme will remain a key pillar of India's efforts to build a cleaner, more resilient, and self-reliant transport fuel ecosystem.