India's Ethanol Industry Poised to Support Fuel Security

India's Ethanol Industry Poised to Support Fuel Security.webp

New Delhi, March 22 With the Middle East in turmoil and crude oil prices rising, the All India Distillers' Association (AIDA) has offered to supply petrol with ethanol blends exceeding 20%, saying this move could proportionally reduce India's dependence on imported crude oil.

In a letter to Union Minister for Road Transport and Highways Nitin Gadkari, AIDA Deputy Director General Bharati Balaji said the ethanol industry was prepared to go beyond the E20 target already achieved by the country.

"Now, with the Middle East embroiled in a conflict and oil prices starting to increase, we, as the ethanol industry, are ready to offer more than 20% ethanol, which will proportionally reduce the import of crude," she said in the letter.

She said such a step would mitigate supply disruptions and the adverse economic impact on the country.

India achieved its E20 ethanol blending target – mixing 20% ethanol with petrol – ahead of schedule in 2025, a goal set under Prime Minister Narendra Modi's administration to cut fuel import bills and reduce emissions.

The association has demanded that the government gradually increase the ethanol blending mandate from 20 to 30%.

Among other demands, AIDA has called for the introduction of flex-fuel vehicles capable of running on 100% ethanol, as in Brazil, the promotion of ethanol-based cookstoves for domestic and commercial use, and the exploration of ethanol blending in diesel to contain costs.

The industry body said that ethanol-based cooking solutions could serve as a clean energy option, particularly in semi-urban and rural areas, aligning with national priorities on clean energy access and reduced indoor air pollution.

India's ethanol sector now has a cumulative production capacity of around 2,000 crore litres, with more than 380 dedicated distilleries operational and a further 33 in the pipeline.
 
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all india distillers' association crude oil distilleries e20 ethanol energy policy ethanol blending ethanol production fuel ethanol india india's crude oil import dependence india's energy sector nitin gadkari petrol renewable energy transport fuels
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