The Indian Sugar Mills Association (ISMA) has formally proposed allowing the export of ethanol, leveraging the nation's surplus production capacity. This strategic move comes on the heels of a significant national achievement: India has successfully reached a 20% ethanol blending rate in petrol, according to official data released recently.
Industry Lobby Eyes Higher Blending Target
While celebrating the 20% milestone, the industry's representative body is not resting on its laurels. ISMA has been actively campaigning for an even more ambitious goal. The association is pushing the government to increase the mandatory ethanol blending percentage from 20% to 30%. This push is part of a long-term vision to deepen India's commitment to renewable biofuels, reduce crude oil imports, and provide a stable revenue stream for the sugar industry.
The Rationale Behind the Export Pitch
The core of ISMA's new proposal lies in the existing infrastructure and production capability. The industry argues that with the current surplus capacity in ethanol production, India is well-positioned to tap into the international market. Allowing exports would serve multiple purposes: it would ensure optimal utilization of distillation plants, generate valuable foreign exchange, and stabilize domestic prices by managing supply effectively.
This development was reported by Gyanendra Keshri and was last updated on 04 December 2025, at 16:43 IST. The news highlights a pivotal moment where policy success creates new commercial opportunities. The industry's stance suggests that after achieving domestic targets, the logical next step is to become a global player in the biofuel sector.
Implications for the Sugar Sector and Energy Security
The ethanol program has been a transformative scheme for India's sugar industry, converting surplus sugarcane into biofuel. The call for exports indicates a maturing of this ecosystem. If approved, this policy shift could lead to:
- Enhanced revenue for sugar mills and farmers.
- Greater investment in distillation capacity.
- Strengthened India's role in the global green energy market.
However, the government must balance export incentives with the unwavering priority of meeting the domestic blending mandate, which is crucial for the nation's energy security and environmental goals.
