
India has reached its target of blending 20% ethanol with petrol five years ahead of schedule, according to the Indian Sugar & Bio-energy Manufacturers Association (ISMA).This marks a major leap from just 1.5% ethanol blending in 2014, when the program was launched under Prime Minister Narendra Modi’s government, ISMA said in a statement on Friday.The ethanol blending program has yielded considerable economic and environmental advantages, as evidenced by ISMA’s statistics.“This achievement is a monumental leap for India’s energy independence and rural prosperity,” Deepak Ballani, Director General of ISMA told PTI.“The government’s unwavering policy direction and visionary leadership have not only made this national success possible five years ahead of schedule but have also set a powerful precedent for our collective future in green energy,” Ballani added.From 38 crore litres in 2014, ethanol production increased to 661 crore litres blended as of June 2025, resulting in 698 lakh tonnes reduction in carbon dioxide emissions.The agricultural sector has benefited substantially, with farmers receiving Rs 1.18 lakh crore and distilleries earning Rs 1.96 lakh crore. Additionally, India has saved Rs 1.36 lakh crore in foreign exchange expenditure.The sugar industry has been instrumental in India’s ethanol production, utilising sugarcane juice, B-heavy molasses and other agricultural by-products for biofuel production, according to ISMA.Reaching the 20% ethanol blending target, originally set for 2030, shows India’s strong commitment to cutting down on fossil fuel imports and boosting rural economic growth, the industry association noted.