EconomyGS-III· 1 min read
Ethanol Blending Programme Shift
Why in news?
The government has restricted the use of sugar-based ethanol for petrol blending in the 2026-27 supply year, prioritizing domestic sugar supplies while continuing the blending program.
Key points
- Oil marketing companies barred ethanol from sugarcane juice, sugar syrup, and B-heavy molasses in the latest tender.
- The move aims to protect domestic sugar availability.
- Incentive for maize-based ethanol has been reduced.
- Tender allows bids for ethanol from maize, broken rice, surplus FCI rice, and C-heavy molasses.
- The nationwide petrol-blending program aims for 20% ethanol blending.
Background & context
India's Ethanol Blended Petrol (EBP) Programme aims to reduce crude oil imports, cut vehicular emissions, and support the agricultural sector. The program has historically relied on both food grain and sugarcane-based ethanol.
★ Prelims fact capsule
The ethanol supply year 2026-27 begins in November.
✎ Mains relevance
GS Paper III: Economy, Agriculture, Food Processing Industry, Internal Security (impact on oil imports).