Ethanol-blended fuel is a national imperative: Industry body ISMA

The Indian Sugar and Bio-Energy Manufacturers Association (ISMA) has defended the government's ethanol blending programme, terming claims about impact on vehicle engines as 'misleading'.

In a statement, ISMA said the E20 blend, which is 20 per cent enthanol mixed with petrol, has been tested by Oil Marketing Companies (OMCs) and has been certified by the Automotive Research Association of India (ARAI) as fully compatible with Indian vehicles. It further said that automobile manufacturers are already producing E20-compliant models

ISMA gave an example of Brazil, which has been using E20 to E100 for decades without major issues. It noted that South American nation currently blends over 27 per cent ethanol in petrol and is targeting 30 per cent by 2030.


"Ethanol-blended fuel is not just a technological choice--it is a national imperative. Backed by rigorous scientific validation and decades of global experience, it delivers clear benefits for our farmers, our economy, and our environment," ISMA Director General Deepak Ballani said in the statement.

The ethanol blending programme has become a "game changer" for over 5 core farmers, with more than Rs 1.18 lakh crore transferred to them.

ISMA said the blending of ethanol with petrol improved the financial health of sugar mills, ensured timely payments to farmers, and helped manage excess sugar inventories, ultimately stabilising sugarcane prices and protecting farmer incomes.

The E20 blend is also expected to save Rs 35,000-40,000 crore in foreign exchange annually by reducing crude oil imports, which account for over 85 per cent of India's consumption.

"The recent negative campaign on social media against ethanol-blended fuels is not only misleading but also detrimental to a nationally important programme," the ISMA statement noted.

Earlier this week, the Ministry of Petroleum and Natural Gas had also dismissed claims circulating on social media that E20 petrol causes a drastic drop in fuel efficiency, besides impacting the engines.

The ministry clarified that while ethanol has a lower energy density than petrol, the impact on fuel efficiency is only marginal.