More Stories

Informist, Wednesday, Sept. 17, 2025

 

By Afra Abubacker

 

NEW DELHI - India's sugar industry has welcomed Oil Minister Hardeep Singh Puri's call to pause ethanol blending in petrol at 20% for assessment before rolling out higher blending mandates. However, it stressed that the sector has the capacity to supply ethanol as required for higher blends and pressed for restoring its supply share in the biofuel mix.

 

Puri on Tuesday said the government would "put a full stop" at 20% ethanol blending in petrol for now, but rejected claims that E20 fuel damages engines or reduces mileage. "We will now assess where we have to go. All the stories you hear that we are now going to do another leapfrog, etc., we haven't come to that conclusion," he said.

 

Shree Renuka Sugars Executive Chairman Atul Chaturvedi called Puri's statement a "comma, not a full stop." "At this point, the government is analysing and evaluating the programme," he said.

 

The government had earlier targeted achieving 20% ethanol blending in petrol by 2030, but shifted the deadline to 2025-26 (Nov-Oct). During November–August, India's cumulative ethanol blending in petrol was 19.1%, and in August it touched 19.8%.

 

With the 20% target nearly achieved, the government has said it will consider raising the ethanol mix in petrol gradually over the coming years. An inter-ministerial committee is currently studying the possibility and impact of raising ethanol blending beyond 20%.

 

Transport Minister Nitin Gadkari had earlier told reporters that a roadmap would be released by August-end, but the government now appears more cautious amid criticism that E20 reduces fuel efficiency, increases vehicle maintenance costs, and risks food security.

 

Industry players broadly supported the pause for assessment. "Obviously, the government must evaluate before it makes a decision. Having said that, we have capacities to supply for higher blending. We still feel the government must continue with its plan to raise ethanol blending mandates," Deepak Ballani, director general, Indian Sugar & Bio-energy Manufacturers Association, said.

 

Chaturvedi added that the industry is less worried about delays in the release of the roadmap than about regaining its share in ethanol supply, which has shifted towards grains. "NITI Aayog had recommended 50% of ethanol should come from sugar, and now it has declined to 30-35%. It's all topsy-turvy. We want this aberration to be corrected," he said.

 

"With the prospect of better sugarcane and more sugar production in 2025-26, it will be possible for the sugar industry to offer 50% of the ethanol requirement," said Prakash Naiknavare, managing director, National Federation of Cooperative Sugar Factories.

 

India is forecast to produce 34.9 million tonnes sugar in the 2025-26 (Oct-Sep) season, up over 18% from last year, according to ISMA estimates. India requires about 12 billion litres of ethanol in 2025-26 to sustain a uniform 20% blend in petrol across the country.

 

Of this 12 billion litres of ethanol requirement, around 60%, or 7.2–7.5 billion litres, is expected from grain-based feedstocks such as maize, while 40% or 4.5–4.8 billion litres will come from sugarcane-based feedstocks, mainly B-heavy molasses and cane juice, according to Joint Secretary (Sugar) Ashwini Srivastava.

 

In the past two years, more ethanol has come from grains as the government incentivised biofuel production from grain-based feedstocks such as maize and rice. Meanwhile, it had restricted cane-based ethanol production to ensure sufficient sugar availability. However, with higher cane acreage and yields expected in the upcoming season, the sugar industry is keen to reclaim the ground it lost to grains.

 

The industry's reactions suggest that while a temporary pause at 20% blending may not derail India's aim for higher ethanol blending mandates, sugar mills are seeking a stronger share in the feedstock basket against the rising dominance of grains like maize.  End

 

Edited by Deepshikha Bhardwaj

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (22) 6985-4000 /+91 (11) 4220-1000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2025. All rights reserved.