The National Federation of Cooperative Sugar Factories has welcomed the government’s decision mandating the sale of petrol blended with up to 20 percent ethanol (E20) with a minimum Research Octane Number (RON) of 95 from April 1, calling it a bold step toward strengthening India’s energy security and agricultural economy.
The Delhi-based federation, which represents cooperative sugar factories across the country, praised the policy and criticised what it described as a “mischievous campaign” aimed at creating confusion about ethanol blending. According to the federation, some vested interests have been spreading misinformation suggesting that ethanol blending reduces vehicle efficiency and mileage.
NFCSF said the government should clarify the facts through an official notification so that the public is not misled. The organisation stressed that the ethanol blending policy has been formulated only after detailed technical and scientific studies.
NFCSF President Harshvardhan Patil thanked Narendra Modi, Amit Shah and Hardeep Singh Puri for taking what he described as an important and forward-looking decision.
According to the government notification, oil marketing companies have been directed to sell ethanol-blended motor spirit containing up to 20 percent ethanol, in line with specifications set by the Bureau of Indian Standards. The fuel must also maintain a minimum Research Octane Number of 95 across states and union territories.
The government has also provided flexibility for special situations. Under certain circumstances, oil companies may be allowed to sell ethanol-blended petrol with BIS-prescribed RON specifications for specific grades of petrol and in designated regions.
RON is a measure of a fuel’s ability to resist engine knocking. Knocking occurs when fuel burns unevenly inside the engine, which can reduce efficiency and potentially cause engine damage. Higher RON fuels, such as those rated 95 or above, provide greater resistance to knocking and help engines operate more smoothly.
The federation said the policy is expected to benefit several sectors linked to ethanol production, including sugar-based distilleries, grain-based distilleries and maize processors. It added that the ethanol blending programme is also an important step toward reducing India’s dependence on imported crude oil.
According to estimates, the ethanol blending initiative has already helped India save nearly Rs 1.4 trillion in foreign exchange on crude oil imports. At the same time, it has strengthened the agricultural economy by providing around Rs 40,000 crore annually to farmers growing crops used for ethanol production.
Patil also pointed out that rising global crude oil prices, partly due to geopolitical tensions in the Gulf region, highlight the need for stronger domestic fuel alternatives. He noted that in Brazil, the world’s largest sugar producer, more sugarcane may be diverted toward ethanol production in the upcoming crushing season due to high energy prices.
He said the federation is also working with the central government to resolve several pending issues related to ethanol production. These include demands for higher ethanol procurement prices, increased allocation for ethanol supply and the release of a new tender under Cycle 2 of the ethanol procurement programme.