Union Petroleum Minister Hardeep Singh Puri on Friday, 10 July 2026, defended India's Ethanol Blending Programme in a sharp post on X, citing figures on foreign exchange savings and additional farmer income while challenging critics to explain their opposition to the scheme.

Context

In his post, Puri stated that without ethanol blending, India would have needed an additional 310 lakh metric tonnes of crude oil. He credited the programme with saving more than ₹1.90 lakh crore in foreign exchange and generating over ₹1.60 lakh crore in additional income for farmers. Translating from the original Hindi, he wrote: 'Ethanol kewal petrol mein milaya jane wala indhan nahin hai' — 'Ethanol is not merely a fuel blended into petrol; it is the shield of India's energy security, the means of farmers' prosperity, and the strong foundation of an Atmanirbhar Bharat.'

He concluded with a pointed question aimed at opponents: 'Those who are opposing this should explain what exactly is their problem with farmers' rising income, foreign exchange savings, and India's energy self-reliance?'

Policy Backdrop

India's Ethanol Blended Petrol programme was first launched on a pilot basis in 2003 across sugar-producing states with a modest 5 per cent blending target. The National Policy on Biofuels 2018 significantly broadened the programme's ambition, raising indicative blending targets and expanding eligible feedstocks beyond molasses to include grains, sugarcane juice, and damaged food produce.

In 2021-22, the government advanced the target for 20 per cent ethanol blending from 2030 to 2025-26, directing oil marketing companies to ramp up procurement. The programme sits within the broader Atmanirbhar Bharat framework launched in 2020, which identifies domestic biofuel production as a pillar of energy security. Nationwide rollout and vehicle compatibility testing for E20 fuel — petrol containing 20 per cent ethanol — are among the key milestones being tracked.

Stakeholders and Impact

Sugarcane farmers are the primary beneficiaries on the agricultural side, as the programme provides an assured off-take channel for sugarcane by-products, chiefly molasses, at government-set procurement prices. Oil marketing companies are the principal buyers and blenders, operating under mandated targets set by the petroleum ministry.

On the import side, the reduction in crude oil demand directly eases pressure on India's current account, given that the country imports roughly 85 per cent of its crude oil requirements. Lower vehicular emissions are an additional environmental co-benefit cited by the government in linking the programme to India's climate commitments. Any revision to feedstock procurement prices or blending mandates in the next Union Budget or petroleum ministry review will be closely watched by both the agricultural and refining sectors.

What's Next

Puri's post arrives as the government tracks progress toward the advanced 2025-26 blending target, with E20-compatible vehicles and fuel infrastructure being rolled out across the country. The minister's public challenge to critics signals that the programme is likely to remain a political as well as a policy flashpoint in the months ahead.

Broader biofuel ambitions — including compressed biogas and biodiesel — are also being pursued under the same energy transition umbrella, suggesting the ethanol programme's logic may be extended further as India works to reduce its structural dependence on crude oil imports.