New Delhi: India’s distillery industry association has received no indication from oil marketing companies (OMCs) to supply ethanol for blending in petrol beyond the prescribed 20 percent limit. This comes as the Karnataka government alleged that some petrol samples contained significantly higher levels of ethanol, the president of the All India Distillers’ Association (AIDA), Vijendra Singh, told ThePrint in an interview.
OMCs undertake the actual blending of ethanol with petrol and are responsible for ensuring the final fuel supplied to consumers meets applicable standards. Ethanol manufacturers supply the fuel to OMCs against allocated requirements and under prescribed quality specifications and contractual arrangements, said Singh.
“At present, there is no indication or direction to distilleries to supply ethanol specifically for blending beyond the prescribed E20 limit,” Singh said.
AIDA is a national industry body representing grain-based and molasses-based alcohol and ethanol manufacturers in India. It has over 200 distillery members that control more than 80 percent of distillation capacity in India.
His remarks come amid a dispute between the Karnataka government and OMCs over the ethanol content in petrol sold in the state. The controversy began after Karnataka minister for food and civil supplies Rizwan Arshad said tests of 63 petrol samples collected from seven districts found ethanol content ranging between 25.5 percent and 31.2 percent.
The minister alleged that samples from Indian Oil Corporation (IOCL) and Hindustan Petroleum Corporation Limited (HPCL) outlets showed ethanol content of 31.2 percent and 30.5 percent, respectively.
The OMCs subsequently disputed the findings, stating their own testing of 893 petrol samples across 27 states and Union Territories, including 56 samples from Karnataka, found ethanol content within the 19-21 percent range. All 56 Karnataka samples were within the prescribed range, with an average ethanol content of 19.30 percent.
The OMCs also questioned technical details provided in the laboratory certificates cited by the Karnataka government, saying these did not specify the prescribed testing method and other details required to independently verify the results. They have sought complete sampling records and access to counterpart samples for independent testing.
The conflicting findings have raised questions about how petrol samples are collected, handled and tested, and whether an independent mechanism is needed to establish the actual ethanol content in fuel supplied to consumers.
Singh said any alleged deviation from prescribed blending specifications would need examination through a proper technical assessment of the entire supply and distribution chain.
“It is important that the concerns raised are addressed through transparent, scientifically validated testing and verification so that the facts are established and consumer confidence in the ethanol-blended fuel programme is maintained,” he said.
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Higher ethanol supplies do not indicate higher blending
The AIDA president also said the significant increase in ethanol supplies to OMCs over the past few years reflects the expansion of India’s ethanol-blending programme and domestic production capacity, rather than any move towards blending beyond 20 percent.
According to government data shared by AIDA, total ethanol supplies by distilleries to OMCs increased from approximately 408 crore litres in Ethanol Supply Year (ESY) 2021-22 to 505 crore litres in 2022-23, 707 crore litres in 2023-24 and around 1,022 crore litres in 2024-25. The ethanol supply year runs from November to October.
Singh clarified that these figures represent supplies from the entire distillery industry and not the individual contribution of AIDA’s member companies.
He attributed the increase to the expansion of domestic production capacity, wider availability of feedstocks and greater participation of grain-based distilleries.
The government’s ethanol-blending programme has also expanded the use of different feedstocks, including maize, surplus rice from the Food Corporation of India (FCI), damaged food grains and sugarcane-based sources.
Singh said higher procurement volumes should not be confused with an increase in the percentage of ethanol blended into petrol, as the overall requirement also depends on petrol consumption and the scale of the E20 programme.
For ESY 2025-26, OMCs procured approximately 1,089 crore litres of ethanol and blended around 1,134 crore litres in pursuit of the national 20 percent blending target, he said.
For the ongoing procurement cycle, ESY 2026-27, OMCs have invited bids for approximately 1,100 crore litres of ethanol. “There is no indication from the available ethanol procurement orders that OMCs are preparing to undertake blending beyond the prescribed E20 level,” Singh said.
Capacity expansion in place, but higher blending needs assessment
India’s installed ethanol production capacity is now estimated at more than 2,200 crore litres annually, giving the industry the potential to meet additional demand, subject to feedstock availability and other operational requirements, Singh said.
He added that several distilleries, particularly grain-based units, had expanded their production capabilities and could scale up supplies if required.
However, he cautioned that installed capacity alone cannot determine the feasibility of higher blending. Sustainable feedstock availability, economic viability, storage and distribution infrastructure, and compatibility with vehicles would also need to be considered.
Any move beyond E20 would therefore require a comprehensive assessment involving the government, OMCs, automobile manufacturers and other stakeholders, supported by scientific studies and an appropriate policy framework, he said.
The controversy has also brought the question of fuel specifications and vehicle compatibility into focus. E20 is a defined fuel specification, and any move to introduce a higher ethanol blend would require appropriate regulatory decisions and technical validation before simply increasing the ethanol content in petrol.
For now, the distillery industry’s position is that its supplies and OMC procurement remain aligned with the existing E20 programme. AIDA has said it has received no indication of a move towards higher blending, while the conflicting test results from Karnataka and the OMCs remain to be independently verified.
(Edited by Anupama Yadav)
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