New ethanol blending target of 30% in petrol likely by 2030

15-Apr-2025 04:30 PM

New Delhi. With ethanol blending in petrol reaching close to 20% by March 2025, the government is now considering raising the target to 30% by the year 2030.

This move is expected to help reduce petroleum imports, promote green energy, and provide better income opportunities for sugarcane, rice, and maize producers.

Initially, the target for 20% blending was set for 2030 but was later revised for the 2024-25 marketing season, which began in November 2024.

In comparison, the average ethanol blend stood at 14.6% in 2023-24 and 12.06% in 2022-23. An inter-ministerial panel will take the final call on the new target.

Despite lower-than-expected sugarcane output this season, ethanol production is likely to surpass last year’s levels. Grain-based distilleries are also expected to boost output, supported by increasing use of rice and maize.

The government has already allocated 24 lakh tonnes of rice to ethanol manufacturers at a subsidized rate of ₹22,500 per tonne, while maize supply remains stable.