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India’s Ethanol Gamble Pays Off as Global Oil Markets Reel

Centre Says No State-wise Ethanol Blending Targets Set
Photo credit: Canva

India began blending ethanol into petrol in 2003 with a modest 5 per cent target. By 2014, the national average sat at just 1.53 per cent. Today, it stands at nearly 20 per cent — ahead of schedule — making India one of the world’s most closely watched biofuel success stories, according to a report in The Times Kuwait.

The country is now preparing to roll out E85 petrol, which contains 85 per cent ethanol, and E100 fuels for flex-fuel vehicles capable of running on multiple ethanol blends.

The major turning point came in 2018 with the National Policy on Biofuels. The policy expanded ethanol production beyond sugarcane molasses to include damaged food grains, surplus rice, maize, and agricultural residues. This reduced reliance on water-intensive sugarcane and brought grain-producing regions in northern and central India into the ethanol economy for the first time.

What began as an environmental initiative to cut carbon emissions has grown into a national strategy tied to energy security, economic resilience, and rural development.

Billions Saved, Jobs Created

India is saving billions of dollars in foreign exchange by cutting its dependence on imported crude oil. The savings carry particular weight now, as instability in West Asia continues to disrupt global supply chains.

The programme is also reshaping rural India. Rising demand for biofuel feedstock is supporting sugarcane farmers, grain producers, distilleries, and logistics networks — generating employment across agriculture, transportation, and manufacturing.

India’s ethanol blending programme has moved well beyond an energy policy. It is now a buffer against the kind of global supply shock currently rattling oil-dependent economies. With E85 and E100 fuels on the horizon, the country is positioning itself to go further still — at a moment when the rest of the world is scrambling to catch up.

IANS

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