India pushes ahead with plans for E85 and E100 ethanol fuels

India, having completed the rollout of 20 % ethanol‑blended petrol (E20), is moving toward higher‑blend fuels such as E25, E30, E85 and pure ethanol (E100). The government has exempted fuels containing 22‑30 % ethanol from excise duty and is proposing amendments to the central motor vehicle rules to officially recognise E85 and E100, aiming to cut crude‑oil imports, lower foreign‑exchange outflows, support farmers and reduce carbon emissions. The policy draws on Brazil’s long‑standing ethanol programme as a model for building a domestic ethanol ecosystem.

While the proposal is framed as voluntary and regulatory rather than a mandatory nationwide switch, analysts warn of potential side effects. Expanding ethanol production could increase water consumption because sugarcane, rice and maize – the primary feedstocks – are water‑intensive crops, raising concerns in a country already facing water stress. There is also a debate over food security, as diverting food‑grade crops to fuel may affect supplies and prices for a population that relies on government food programmes.