India is betting big on ethanol, aiming to transform its energy sector while addressing environmental concerns and bolstering rural economies. By fast-tracking the target for 20% ethanol blending in petrol (E20) to 2025, the government has signaled a strong commitment to cleaner energy solutions. The stakes are high, and so are the opportunities—but the road ahead isn’t without bumps. Why the ethanol push? It’s simple: reducing dependence on imported crude oil, which feeds 85% of India’s petroleum demand, saves precious foreign exchange and cuts harmful emissions. From a mere 1.5% ethanol blend in 2014 to 15% in 2024, the Ethanol Blended Petrol (EBP) program has already saved over ₹1,06,072 crore in forex and slashed CO₂ emissions by 544 lakh tonnes. Not bad for a decade’s work. The National Policy on Biofuels (2018) turbocharged this movement, allowing ethanol to be produced from sugarcane juice, surplus grains, and even agricultural residues. Fixed ethanol procurement prices, while providing stability, aren’t keeping pace with skyrocketing raw material costs. Grain-based distilleries, which depend on rice and maize, are feeling the pinch. Over the past year, broken rice prices jumped to ₹28/kg (up from ₹22.5/kg), while maize prices surged to ₹26/kg (from ₹21/kg). These rising costs are squeezing margins, and with falling byproduct prices, like those of DDGS, some producers are teetering on the edge of financial viability.