Under the EBP Programme, ethanol blending has increased from less than 1.5 percent in 2013-14 to 20 percent in 2025-26. India achieved the 20 percent blending target five years ahead of schedule. Ethanol procurement rose from about 38 crore litres in Ethanol Supply Year (ESY) 2013-14 to over 1,200 crore litres (projected) in 2025-26. Production capacity expanded nearly fivefold from 421 crore litres in 2014 to about 2,000 crore litres in 2026. This expansion has reduced crude oil imports and saved valuable foreign exchange. It has also lowered greenhouse gas emissions and strengthened farmers' incomes through new market opportunities.

India imports close to 88.5 percent of the crude oil it consumes. That single number explains a great deal about why ethanol blending sits so high on the policy agenda. Every barrel of oil bought from abroad exposes the country to price swings and supply shocks that are entirely outside its control. Ethanol produced from Indian sugarcane, maize and rice offers a way to blunt that exposure using resources grown at home.

Since the ESY 2014-15 (up to May 2026), the programme has delivered results that go well beyond a policy target on paper.

Here is what the evidence actually shows on the key concerns surrounding ethanol blending, along with the more colourful myths that have circulated on social media.

The 30 percent figure refers only to ethanol's lower calorific value compared to petrol, not to a drop-in real-world mileage. Mileage depends on driving habits, tyre pressure, servicing and AC load far more than fuel type.

No widespread pattern of engine failure linked to E20 has been reported since rollout. E20 was cleared only after extensive testing by SIAM, ARAI and IOCL together with vehicle makers.

Ethanol is not a high-performance fuel and reduces vehicle performance.

Ethanol is a high-octane fuel, with a research octane number of about 108.5, compared to 84.4 for petrol. E20 raises the effective octane rating of Indian petrol to around 95, improving combustion in modern engines. Vehicles calibrated for E20 can deliver better acceleration, smoother performance, and lower emissions.

Insurance companies refuse claims for E20 related damage.

Insurers and OEMs have clarified: E20 has NO impact on insurance or warranty validity in India. SIAM has categorically confirmed warranties will be honoured for vehicles running spec-compliant E20.

Ethanol blended fuel should be cheaper, and government is pocketing the difference.

The NITI Aayog report cited for this claim is from 2020-21, when ethanol was indeed cheaper than petrol. Ethanol procurement costs have since risen above refined petrol costs, yet the mandate continues because of the energy security, environmental and farm income gains it delivers.

The Government told the Supreme Court that E20 is just an 'experiment'.

The case was about ethanol procurement contracts -not E20's merits. The Attorney General's office clarified on 30.06.2026 that the 'experiment' claim is incorrect.