India Set To Raise 2030 Ethanol Blending Target To 30% From 20%

India is set to increase its ethanol blending target to 30% by 2030, up from 20%, after reaching the earlier milestone five years ahead of schedule, according to a report by InCred.

The country achieved 20% blending in March 2025. “This year, we’ve already done around 19–20%. This is five years earlier than the target for 2030,” InCred said quoting Indian Sugar & Bio-energy Manufacturers Association Director's General Deepak Ballani as saying.

"Officials from the Ministry of Petroleum and Natural Gas said the revised 30% goal has received inter-ministerial approval," InCred said in a note. The target is part of the government’s strategy to improve energy security, support farmer incomes, and reduce carbon emissions.

India has increased its ethanol blending levels steadily over the past few years. Average blending stood at 12.06% in the financial year ending March 2023 and rose to 14.6% in the succeeding financial year. By February 2025, it had reached 19.6%, with the 20% mark crossed soon after.

In the financial year 2023-24, total ethanol blended reached 7.07 billion litres. Oil Marketing Companies allocated 9.96 billion litres during the year, setting a new high.

The ethanol programme has led to several measurable outcomes over the past decade. India substituted 20 million metric tonnes of crude oil and avoided 62.6 million metric tonnes of carbon emissions. The government estimates that this helped save Rs 1.2 lakh crore in foreign exchange. Ethanol procurement also generated Rs 1.04 lakh crore in payments to farmers.

Blended fuel was available at 27,900 OMC outlets in 2014. A decade later, all petrol stations in India supply blended petrol.

The government is reviewing whether to adopt a phased or unified approach to reach the 30% target. The Indian Sugar & Bio-energy Manufacturers Association has asked for an expansion of E100 retail pump access.