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The government clarified that the Ethanol Blended Petrol (EBP) Programme uses only surplus or damaged foodgrain certified after every food-security obligation — PDS, NFSA, welfare schemes and buffer stocks — is met, never grain meant for the poor
FCI rice is one of six approved feedstocks priced under a common government formula (Rs.57.97-Rs.71.86/litre in ESY 2025-26); its share of ethanol output rose from just 0.02% in ESY 2023-24 to 24.64% in ESY 2025-26 only because certified surplus became available
The EBP Programme has saved over Rs.1.97 lakh crore in forex, substituted over 316 lakh MT of crude imports, cut over 950 lakh MT of CO2, and paid over Rs.1.66 lakh crore to farmers and distillers; without 20% blending, petrol was projected to cost around Rs.125/litre versus the actual Rs.94.77/litre during the 2026 crude price surge
| Feedstock | Ethanol Price Paid |
|---|---|
| Maize | Rs.71.86/litre |
| Sugarcane Juice/Syrup | Rs.65.61/litre |
| Damaged Foodgrains | Rs.64.00/litre |
| B-heavy Molasses | Rs.60.73/litre |
| FCI Rice | Rs.60.32/litre |
| C-heavy Molasses | Rs.57.97/litre |
Promote 2nd Generation (2G) ethanol from agricultural residue and non-food biomass, reducing reliance on foodgrain feedstocks
Key: Launched 7 March 2019; outlay Rs.1,969.50 crore (2018-19 to 2023-24) for 12 commercial-scale and 10 demonstration-scale 2G bioethanol projects
Sets indicative ethanol and biodiesel blending targets and categorises biofuels
Key: 20% ethanol-blending target advanced from 2030 to ESY 2025-26 via a 2022 amendment; achieved in 2025
Statutory body for procurement, storage and distribution of foodgrains; supplies surplus/damaged rice as an ethanol feedstock only after PDS, NFSA and buffer-stock obligations are met
India's ethanol procurement and blending cycle runs from December to November each year, not the fiscal or calendar year. Blending percentages and feedstock shares (such as FCI rice's rising share) are tracked and reported against this ESY cycle.
Simple Analogy: Like a school's academic year running June to May instead of January to December — the same idea of a cycle offset from the calendar year.
GS Paper 3 > Energy Security > Biofuels and Ethanol Blending
Recurring — ethanol blending targets and EBP milestones are asked almost every year
India's December-to-November cycle for tracking ethanol procurement and blending percentages