Ethanol industry ready to supply more than 20% blending, can cut crude import bill: AIDA

With West Asia in turmoil and crude oil prices rising, the All-India Distillers’ Association (AIDA) has offered to supply ethanol blends exceeding 20 per cent with petrol, saying the move could proportionally reduce India’s dependence on imported crude oil.

In a letter to Union Minister for Road Transport and Highways Nitin Gadkari, AIDA Deputy Director General Bharati Balaji said the ethanol industry was prepared to go beyond the E20 target already achieved by the country.

“Now with the Middle East entangled in a war and oil prices having started increasing, we as an ethanol industry are ready to offer ethanol more than 20 per cent, which will reduce the import of crude proportionally,” she said in the letter.

She said such a step will mitigate supply disruptions and adverse economic impact on the country.

India achieved its E20 ethanol blending target —mixing 20 per cent ethanol with petrol — ahead of schedule in 2025, a goal set under Prime Minister Narendra Modi’s administration to cut fuel import bills and reduce emissions. The association has demanded that the Government raise the ethanol blending mandate gradually from 20 to 30 per cent. Among other demands, AIDA has called for the introduction of flex-fuel vehicles capable of running on 100 per cent ethanol on the lines of Brazil, promotion of ethanol-based cook stoves for domestic and commercial use, and exploration of ethanol blending in diesel to contain costs.

The industry body said ethanol-based cooking solutions could serve as a clean energy option, particularly in semi-urban and rural areas, aligning with national priorities on clean energy access and reduced indoor air pollution. India’s ethanol sector now has a cumulative production capacity of around 2,000 crore litres, with more than 380 dedicated distilleries operational and a further 33 in the pipeline.