- Ethanol blending has not affected India's food security, according to Suresh Gopi, Minister of State in the Union Ministry of Petroleum & Natural Gas, who addressed the Rajya Sabha on July 20, 2026.
- As of July 16, 2026, 501 ethanol suppliers were registered with Public Sector Undertaking (PSU) Oil Marketing Companies (OMCs), with a cumulative procurement expenditure exceeding ₹1.72 lakh crore over the last three Ethanol Supply Years (ESY).
- Ethanol ATMs and the biofuel story are progressing beyond E20, indicating advancements in the ethanol sector.
- The government follows an open-ended procurement system at the Minimum Support Price (MSP), prioritizing procurement for the Public Distribution System (PDS) and other welfare schemes.
- Only surplus foodgrains are permitted for ethanol production, as determined by the Department of Food & Public Distribution after meeting all food security requirements.
Suresh Gopi, Minister of State for Petroleum, addressed the Rajya Sabha on July 20, 2026, stating that the government's 20% ethanol blending target has not jeopardized food security.1
Only surplus foodgrains are used for ethanol production, ensuring that food security remains a top priority. The government follows an open-ended procurement system at the Minimum Support Price (MSP), prioritizing procurement for the Public Distribution System (PDS) and National Food Security Act (NFSA).45
As of July 16, 2026, 501 ethanol suppliers are registered with Public Sector Undertaking (PSU) Oil Marketing Companies (OMCs), with a cumulative procurement expenditure exceeding ₹1.72 lakh crore over the last three Ethanol Supply Years (ESY). Gopi noted that ethanol is sourced from domestic materials, including sugarcane and surplus rice, ensuring that food security needs are met first.2
The blending initiative has significantly increased from 1.5% a decade ago to 20%, contributing to reduced crude oil imports and improved farm incomes. Since 2014-15, ethanol blending has saved over ₹1.4 lakh crore in foreign exchange while generating additional income for farmers and distilleries. The government is also exploring new markets for ethanol, including potential exports to countries like Nepal and Bangladesh, which have blending targets but lack production capacity.
India's ethanol capacity is projected to reach 24 billion litres annually, with the E20 blending programme consuming about 11 billion litres per year. The government is also considering ethanol for cooking fuel, indicating a broader push for biofuels in various sectors.
“Ethanol procurement expenditure rose from ₹48,757 crore in ESY 2023-24 to ₹73,996 crore in 2024-25, with cumulative spending over ₹1.72 lakh crore in three years. Policymakers are also exploring ethanol ATMs and cooking fuel retail models to absorb surplus capacity, which exceeds 20 billion litres annually.”
ChiniMandi
