Real markers of success for ethanol blending: What it entails, why and how much it costs

India’s ethanol blending programme reached 20% blending (E20) in 2025, five years ahead of target.

The programme has saved foreign exchange of over ₹1.9 lakh crore and generated additional farmer incomes over ₹1.6 lakh crore since 2014.

In 2025, ethanol blending offset crude imports by close to 3.5%, saving nearly ₹42,000 crore.

Oil marketing companies procure ethanol at a fixed price depending on feedstock, but this does not capture the full public cost.

India is considering higher blends (E22, E25, E27) and diesel blending with isobutanol, raising concerns about land, water, and food system pressure.