News Capsule: Increase in Ethanol Production Capacity
01-Jan-2026 11:35 AM
News Capsule: Increase in Ethanol Production Capacity
★ According to the annual review of the Ministry of Consumer Affairs, India’s ethanol production capacity increased to 19.53 billion litres by the end of October 2025, compared with less than 2.0 billion litres in 2014. Of this, 9.8 billion litres are from grain-based distilleries and 9.73 billion litres from molasses and dual-feed distilleries.
★ During the ethanol supply year 2024–25 (November–October), India achieved 19.24% ethanol blending with petrol. The government said that diversion of sugar for ethanol production has strengthened the cash flow of sugar mills, enabling timely payments to sugarcane farmers.
★ Over the past 10 years, sugar mills have earned more than ₹1.29 trillion from ethanol sales. The ethanol blending programme has attracted investments of over ₹420 billion, led to the establishment of new distilleries, and generated direct and indirect employment in rural areas.