India has an indicative target of 20% blending of ethanol with gasoline and 5% blending of biodiesel with diesel by 2030.
The new ethanol blending program (EBP) stipulates procurement of ethanol produced directly from B-heavy molasses, sugarcane juice, and damaged food grains such as wheat and broken rice.
According to the US Department of Agriculture (USDA), theoretically, all ethanol available in India in 2018 is sufficient to meet a 7% blend target. However, demand rationing, particularly from the potable (consumption based, such as alcoholic beverages) and the industrial sectors may limit the national biofuel blend average.
According to USDA analysis, India is likely to achieve its second highest fuel ethanol market penetration at 3.2% in 2018. Last year’s blend rate achieved was 1.9%.
Concurrently, the biodiesel blend is less than 0.12% mostly due to limited feedstock availability and lack of an integrated and dedicated supply chain.