Fuelling Demand
E85 to generate 3.12 bln ltr ethanol demand per annum, says ISMA's Ballani
This story was originally published at 19:27 IST on 6 June 2026
Register to read our real-time news.Informist, Saturday, Jun. 6, 2026
NEW DELHI/MUMBAI – The government's E85 launch to power flex-fuel vehicles that can run on ethanol-petrol blends ranging from E20 to E100 is likely to generate demand for 3.12 billion litres of ethanol annually, Deepak Ballani, director general of Indian Sugar & Bio-Energy Manufacturers Association, said.
"If FFVs (flex-fuel vehicles) account for 50% of new vehicle sales, this could generate demand for 312 crore (3.12 billion) litres of ethanol annually, 12,400 crore (INR 124 billion) in farmer payments, and CO2 (carbondioxide) reduction of 66.4 Lakh MT (6.64 million metric tonnes) — a decisive step toward Atmanirbhar Bharat and energy security," Ballani said.
He said E85 which is priced at INR 82.12 per litre approximately compared to INR 102.12 per litre for E20, completes India's flex-fuel ecosystem. The launch of E85 fuel and higher ethanol-blend-compliant flex-fuel vehicles comes after the government recently amended rules to formally recognise these fuels within the regulatory framework to facilitate their adoption.
In April, the Ministry of Road Transport and Highways issued a notification, proposing amendments to the Central Motor Vehicles Rules to include higher ethanol blends such as E85 and E100, as well as biodiesel and hydrogen blended gas.
In the 2025-26 ethanol supply year which began in November, companies procured 5.136 billion litres of ethanol, blended 5.427 billion litres, and achieved 20% blending on a cumulative basis. End
Reported by Afra Abubacker and J. Navya Sruthi
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
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2026. All rights reserved.
To read more please subscribe
Share this Story:
