India achieves 20% ethanol blending target five years ahead of schedule: Indian Sugar & Bio-energy Manufacturers Association (ISMA)

India has successfully achieved its target of 20% ethanol blending with petrol five years ahead of its 2030 deadline, marking a major milestone in the country’s transition towards green energy. According to the Indian Sugar & Bio-energy Manufacturers Association (ISMA), this achievement represents a steep rise from the mere 1.5% blending rate recorded in 2014, when the programme was first launched under the leadership of Prime Minister Mr. Narendra Modi. The ethanol blending initiative has significantly reduced India’s reliance on fossil fuel imports while providing substantial environmental and economic dividends. Ethanol production rose from 380 million litres in 2014 to 6,610 million litres by June 2025, resulting in a reduction of 69.8 million tonnes in carbon dioxide emissions. The programme has supported the rural economy by generating Rs. 1,18,000 crore (US$ 13.66 billion) in income for farmers and Rs. 1,96,000 crore (US$ 22.69 billion) for distilleries. Additionally, it helped India save Rs. 1,36,000 crore (US$ 15.74 billion) in foreign exchange.

The sugar industry has been pivotal to this success, supplying ethanol from sugarcane juice, B-heavy molasses, and other agro-based inputs. Director General of Indian Sugar and Bio-energy Manufacturers Association, Mr. Deepak Ballani, credited the government’s policy clarity and strategic direction for the achievement, calling it a “monumental leap” towards energy self-sufficiency and rural prosperity. This accelerated progress reinforces India’s leadership in renewable energy adoption and demonstrates its capacity to deliver on ambitious sustainability goals. With the early completion of its ethanol blending objective, India has established a robust precedent for future clean energy initiatives and for harnessing agriculture as a key contributor to its green growth trajectory.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.