India has reached a significant milestone in its clean energy journey by achieving 20 per cent ethanol blending in petrol, and the government is now looking at ethanol exports as the next big step. Union Minister for Road Transport and Highways, Nitin Gadkari, said that with surplus production, India must shift focus towards becoming a global exporter of ethanol.
Speaking at the 2nd International Conference and Exhibition on Bioenergy and Technologies in New Delhi, Gadkari stressed that ethanol is central to India’s futuristic development. “We need to reduce imports and boost exports. With a surplus in ethanol, the time has come for India to export,” he said.
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Surplus Ethanol Production in India
India’s ethanol production capacity touched nearly 1,822 crore litres annually by June 30, 2025, supported by the government’s Ethanol Blended with Petrol (EBP) Programme. The initiative is pushing production from both sugarcane molasses and grain-based feedstocks like maize and rice. In the current Ethanol Supply Year (2024–25), India has already achieved 19.05 per cent blending as of July 31, 2025, marking steady progress toward the 20 per cent target for ESY 2025–26.
Farmers Reaping Benefits from Ethanol Policies
Highlighting ethanol’s economic impact, Gadkari pointed out that farmers’ annual earnings have risen by nearly Rs 45,000 crore due to the government’s ethanol policies. He noted that crop diversification into energy production is unlocking new opportunities for rural India. Drawing inspiration from Brazil’s ethanol model, he emphasised that India is now advancing rapidly, especially in corn-based ethanol production.
Tackling Pollution with Biofuels
The minister underlined how ethanol blending, along with bio-CNG and rice straw-based ethanol, is helping reduce both stubble burning and urban pollution. “With 500 rice straw-based plants under development, agricultural waste will no longer be a burden but a valuable energy source,” he said.
He also highlighted successful pilot projects such as ethanol-powered generators, bio-bitumen roads, and flex-fuel vehicles. Major automakers, including Toyota, Tata, Mahindra, Suzuki, and Hyundai, are adopting flex-fuel technology, while tractor and construction equipment manufacturers are embracing biofuels and hydrogen.
New Frontiers: Green Hydrogen and Sustainable Aviation Fuel
Looking ahead, Gadkari pointed to emerging areas such as green hydrogen and sustainable aviation fuel (SAF). Pilot projects in these sectors are already underway, reinforcing India’s commitment to alternative fuels that can reduce import dependency, cut emissions, and transform rural economies.
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Biofuels as an Economic and Environmental Revolution
Gadkari concluded by stressing that biofuels represent far more than an environmental solution—they are an economic revolution for rural India. “Nearly 40 per cent of India’s air pollution is caused by transport fuels, while fossil fuel imports cost the nation Rs 22 lakh crore annually. Biofuels are the answer for reducing pollution, creating jobs, and ensuring Atmanirbhar Bharat,” he said.
He added that the sky is the limit for India’s biofuel future, with the potential to transform agriculture, energy security, and sustainability.
