Ethanol Blended Petrol Program: A Game Changer for India's Energy and Economy

Ethanol Blended Petrol's Impact on India

Ashwini Srivastava, the Joint Secretary of the Department of Food & Public Distribution (DFPD), emphasized the significant role of the Ethanol Blended Petrol (EBP) Programme in enhancing India's energy security and boosting the rural economy. He noted that the initiative has led to savings exceeding Rs 1.90 lakh crore by substituting over 310 lakh metric tonnes of crude oil with domestically produced ethanol. Srivastava stated, "The EBP Programme has provided substantial economic, environmental, and social advantages to the nation over the last decade. The achievement of 20% ethanol blending has allowed India to lessen its reliance on imported crude oil, resulting in foreign exchange savings of more than Rs 1.90 lakh crore."

During his address at the GEMA Ethanol Conclave 2026, he mentioned that the government's recent update to the quality standards for rice distributed under the Pradhan Mantri Garib Kalyan Anna Yojana further enhances this ecosystem. By lowering the allowable broken rice content from 25% to 10%, the policy aims to provide higher-quality rice for over 80 crore beneficiaries while making more broken rice available for industrial uses, including ethanol production.

He added, "Alongside maize, which has become the primary feedstock for ethanol production, this will bolster feedstock availability and support the next phase of India's biofuel initiative, while promoting both food and energy security."

Dr. C. K. Jain, President of the Grain Ethanol Manufacturers Association (GEMA), remarked, "India's effective implementation of E20 signifies the start of a new chapter in its biofuel journey. As the nation moves towards higher ethanol blends and broader adoption of Flex Fuel Vehicles (FFVs), grain-based ethanol will increasingly contribute to enhancing energy security, decreasing crude oil import reliance, generating rural employment, and improving farmers' incomes."

Jain further stated, "At GEMA, we aim not only to expedite India's transition to ethanol but also to foster a farmer-centric movement that generates sustainable value throughout the rural economy while supporting the country's clean energy and energy security objectives." In a prior discussion with a digital media outlet, Jain indicated that ethanol blending has become one of India's most effective strategies to diminish import reliance, potentially lowering petrol prices by up to Rs 20 per litre. He also highlighted that the current global crude oil fluctuations, exacerbated by tensions in West Asia, have reinforced the necessity for increased ethanol blending in India.