This industry body supports Modi government's E20 fuel blending program
What's the story
The Indian Sugar and Bio-Energy Manufacturers Association (ISMA) has come out in defense of the Indian government's ethanol-blending program. The association's statement comes in light of 'misleading' information being circulated about the impact of this initiative on vehicle engines. ISMA clarified that the E20 fuel blend, which is 20% ethanol mixed with petrol, has been extensively tested by oil marketing companies (OMCs) and approved by the Automotive Research Association of India (ARAI).
Industry adaptation
Auto manufacturers preparing E20-compliant models
ISMA pointed out that automobile manufacturers are already making models compliant with the E20 standard. This shows an industry-wide acceptance of the ethanol-blending program. The association further cited Brazil's long-standing use of ethanol blends from E20 to E100 without major issues as a global precedent for such initiatives. Brazil currently blends over 27% ethanol in petrol and aims to increase it to 30% by 2030.
Statement
'Ethanol-blended fuel a national imperative'
Deepak Ballani, ISMA's Director General, stressed that "ethanol-blended fuel is not just a technological choice--it is a national imperative." He added the initiative is backed by rigorous scientific validation and decades of global experience. Ballani also emphasized the clear benefits it offers for farmers, the economy, and the environment. The statement highlights how this program has become a game changer for over five crore sugarcane farmers with over ₹1.18 lakh crore transferred to them.
Economic impact
Potential annual savings of ₹40,000cr
ISMA contended that blending ethanol with petrol has improved the financial health of sugar mills, ensured timely payments to farmers, and also helped manage excess sugar inventories. This, in turn, has stabilized sugarcane prices and protected farmer incomes. The association estimated that the E20 target might save ₹35,000-40,000 crore in foreign exchange annually by lowering crude oil imports which account for over 85% of India's consumption.
Misinformation alert
Ministry rejects claims about E20 blend
ISMA condemned the recent negative campaign on social media against ethanol-blended fuels as "misleading" and detrimental to a nationally important program. The Ministry of Petroleum and Natural Gas had also rejected claims that E20 petrol drastically reduces fuel efficiency and harms engines. The ministry clarified that while ethanol has a lower energy density than petrol, its effect on fuel efficiency is only marginal.