The Indian Sugar & Bio-Energy Manufacturers Association (ISMA) and the Indian Federation of Green Energy (IFGE) have jointly appealed to the government to introduce a ‘National Ethanol Mobility Roadmap’ — a clear plan for India’s ethanol blending journey beyond the current E20 (20% ethanol-blended fuel) level.
They have also requested the government to reduce GST on Flex-Fuel Vehicles (FFVs) and Smart Hybrid Vehicles, and to provide consumer incentives similar to those under the FAME scheme for Electric Vehicles (EVs). According to the two organizations, these steps will help maintain the momentum of India’s growing ethanol revolution.
India’s Ethanol Success Story
India has already achieved its E20 blending target five years ahead of schedule, a major milestone that has drawn global attention. This achievement showcases India’s strong leadership and the close collaboration between the sugar, bioenergy, and automotive sectors in promoting clean and sustainable mobility.
The sugar industry has played a central role in this progress, investing about ₹40,000 crore to create an ethanol production capacity of over 900 crore liters per year. This has not only strengthened India’s blending capabilities but also improved the sugar sector’s financial health — ensuring faster payment of cane dues, steady demand for sugarcane, and millions of rural jobs.
Need for a Roadmap Beyond E20
Deepak Ballani, Director General of ISMA, said that while the sector has met its blending targets ahead of time, the absence of a long-term policy beyond E20 could slow progress.
“India’s ethanol producers are ready to support up to 27% blending, but without a clear roadmap, production capacities may remain underutilized. This would lead to idle investments, lower revenues, and stagnation in biofuel innovation,” he said.
ISMA is urging the government to announce a phased, time-bound roadmap that sets future blending milestones, introduces standards for vehicles running on higher ethanol blends, and promotes next-generation fuels like 2G/3G ethanol, Sustainable Aviation Fuel (SAF), and green chemicals.
Concerns Over Stagnant Prices
The appeal also notes that ethanol procurement prices for B-heavy molasses and sugarcane juice-based ethanol haven’t been revised in the past three years. This has put financial pressure on producers and could affect future growth. A clear roadmap, ISMA and IFGE said, would ensure better capacity utilization and continued income growth for farmers.
IFGE’s Call for Policy Clarity
Dr. Pramod Chaudhari, President of IFGE, emphasized that India’s ethanol achievements are a result of strong cooperation between industry and government. He urged the announcement of a ‘National Ethanol Mobility Roadmap 2030’ with specific goals beyond E20.
Such a roadmap, he said, would promote vehicle adaptation, advanced biofuels, and green chemical production, while encouraging long-term investments and R&D. This would strengthen India’s global leadership in sustainable bioenergy.
Flex-Fuel Vehicles Could Play a Key Role
Both organizations highlighted the importance of Flex-Fuel Vehicles (FFVs) and Smart Hybrids, which can run on ethanol blends up to E100. These vehicles can significantly reduce India’s oil imports — potentially saving ₹50,000 to ₹75,000 crore annually — and help meet the country’s Net Zero 2070 target.
However, the current 43% GST rate on these vehicles is a major barrier, especially when compared to the 5% GST on EVs. ISMA and IFGE have urged the government to bring parity in taxation to make FFVs and Smart Hybrids more affordable.
Building a Cleaner, Self-Reliant Future
Reaffirming their commitment, ISMA and IFGE said that India’s sugar and bio-energy sectors are central to supporting farmers and ensuring the nation’s transition to a cleaner and more self-reliant energy future.
They emphasized that with continued policy support, India can turn its ethanol success into a long-term opportunity—boosting rural incomes, reducing oil imports, and driving sustainable growth in the transport sector.
