India’s Ethanol Revolution: A Decade of Transition from Sugar to Grain-Based Biofuel

November 02, 2025. India's ethanol blending program has witnessed an unprecedented transformation over the past 13 years, with supply increasing nearly 68 times from 15.40 crore liters in Ethanol Supply Year (ESY) 2012-13 to an allocated 1,048.10 crore liters for ESY 2025-26. This growth has driven ethanol blending in petrol from a negligible 0.67% to an impressive 19.17% in the first half of ESY 2024-25, bringing India close to achieving its 20% ethanol blending target by 2025. The country’s biofuel landscape has strategically shifted from reliance on sugar-based ethanol to over 70% grain-based feedstock, highlighting a major reorientation in the agriculture and energy sectors. This shift not only enhances energy security by reducing crude oil imports but also promotes farmer incomes by creating new demand for grain crops. Government initiatives supporting this revolution include expanding feedstock availability, introducing a transparent pricing mechanism, reducing GST on ethanol to 5%, and deploying interest subvention schemes for ethanol production. This transformation has also contributed significantly to environmental benefits, including substantial reductions in carbon emissions. India’s ambitious ethanol blending program showcases a successful model of sustainable energy transition that balances agricultural prosperity, energy security, and environmental sustainability.