New Delhi: The Indian Sugar and Bio‑Energy Manufacturers Association (ISMA) has urged the Prime Minister’s Office to accelerate India’s ethanol blending programme beyond the current 20 per cent level, proposing a gradual increase to 22%, 25% and even 27% in the coming years.
According to sources, ISMA recently wrote to the government highlighting that ongoing volatility in global energy markets makes it important for India to increase the use of domestically produced biofuels.
The association noted that India now has a strong ethanol production ecosystem, making it an ideal time to introduce a fast-tracked and carefully planned roadmap for blending ethanol beyond E20.
ISMA also pointed out that India still imports around 85 per cent of its crude oil requirements, leaving the economy vulnerable to fluctuations in global oil prices. Even a $1 increase in crude prices can raise India’s annual import bill by nearly $2 billion, which directly impacts inflation, logistics costs and the country’s fiscal balance.
Recent geopolitical tensions in the Middle East and disruptions in global shipping routes have further exposed the fragility of global energy supply chains. At one point, crude oil prices surged by nearly 30 per cent, touching levels close to $120 per barrel.
Although prices have eased since then, most analysts expect crude oil to fluctuate between $75 and $105 per barrel in the near term.
ISMA said that increasing the use of domestic biofuels could serve as an important strategic buffer against such global energy shocks while strengthening India’s energy security.
India currently has an ethanol distillation capacity of about 20 billion litres, including production from both sugar and grain sources. The sugar industry alone accounts for nearly 9 billion litres of this capacity.
However, the annual ethanol requirement for achieving E20 blending is estimated at around 11 billion litres, meaning only about 55 per cent of the installed capacity would be utilised at that level.
This indicates that India already has sufficient production capacity to support higher ethanol blending levels, ISMA said, adding that boosting domestic biofuel usage would help the country address global energy challenges while reducing dependence on imported crude oil.
