COMMODITY
Govt permits sugar mills, distilleries to produce ethanol without any restrictions in 2025-26 marketing year
Sep-02-2025

The government has permitted sugar mills and distilleries to produce ethanol from sugarcane juice/sugar syrup, B-heavy molasses as well as C-heavy molasses without any quantitative restrictions in the 2025-26 marketing year starting in November. Ethanol Supply Year (ESY) runs from November to October. 

The Centre has been promoting blending of ethanol in petrol under the Ethanol Blended Petrol (EBP) programme. Public Sector Oil Marketing Companies (OMCs) sell ethanol blended with petrol.

During the ongoing ESY 2024-25, OMCs have achieved an average ethanol blending of 19.05 per cent as of July 31, 2025. The National Policy on Biofuels 2018, as amended in 2022, inter alia advanced the target of 20 per cent blending of ethanol in petrol from 2030 to ESY 2025-26.

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