Ethanol Blended Petrol Programme

Ethanol is an agro-based product, mainly produced from a by-product of the sugar industry, namely molasses. In years of surplus production of sugarcane, when prices are depressed, the sugar industry is unable to create timely payments of cane prices to farmers. The Ethanol Blending Programme (EBP) seeks to realize a blending of Ethanol with motor spirit to scale back pollution, conserve exchange and increase value addition within the sugar industry enabling them to clear cane price arrears of farmers.

The Central Government has scaled up blending targets from 5% to 10% under the Ethanol Blending Programme (EBP). The procedure of procurement of ethanol under the EBP has been simplified to streamline¬†the whole¬†ethanol supply chain and remunerative ex-depot price of ethanol has been fixed. To facilitate achieving¬†of recent¬†blending targets, a "grid‚ÄĚ which networks distilleries to OMC depots and details quantities to be supplied has been¬†discovered. State-wise demand profile has also been projected, keeping¬†visible¬†distances, capacities and other sectoral demands. Excise duty has also been waived on ethanol supplies to OMCs for EBP by sugar mills during 2015-16 (up to 10 August, 2016). The results¬†are¬†quite encouraging, with supplies doubling¬†each year.¬†within the¬†year 2013-14, ethanol supplied for blending was only 38 crore litres, whereas in 2014-15, under the modified EBP supplies increased to 67 crore litres.¬†within the¬†ethanol season 2015-16, the ethanol supply has been historically high and has reached 111 crore litres achieving 4.2% of blending.¬†within the¬†ethanol season 2016-17, out of 80 cr litre contracted about 66.51 cr litre has been supplied. Further,¬†within the¬†ethanol season 2017-18, LOI has been issued for supply of 139.51 cr litres of ethanol, out of which agreement¬†are¬†signed for 136 cr litres and about 46.25 cr litre has been supplied¬†up to now.¬†additionally¬†second round of tender has been opened by OMCs for bidding for procurement of 117 cr litre of ethanol under EBP.


Ensuring Food Security for citizens of the country.


Efficient procurement at Minimum Support Price (MSP), storage and distribution of food grains.

Ensuring availability of food grains and sugar through appropriate policy instrument; including maintenance of buffer stocks of food grains.

Making food grains accessible at reasonable prices, especially to the weak errand vulnerable sections of the society under PDS.



To implement the national food security Act, 2013, throughout the country.

To undertake price support operations through efficient procurement of wheat, paddy/rice and coarse gains.

To Strength the Targeted Public Distributions Systems.

Development/Promotion of Sugar Industry.

Development of the Warehousing Sector.

Improvement in Public Service System.



Participation in international Conferences, Associations and other bodies concerning food, i.e. International Wheat Council, World Food Council, International Food Policy Research Institute, Commission/Committees on Food Security and implementation of decisions made thereat.

Entering into treaties and agreements with foreign countries and implementing treaties, agreements, conventions with foreign countries relating to trade and commerce in foodgrains and other foodstuffs.

Hiring and acquisition of godowns for storage of foodgrains including sugar, taking on lease or acquiring land for construction of foodgrains godowns.

Matters relating to the Food Corporation of India and the Central Warehousing Corporation.

Purchase of foodstuffs for civil requirements and their disposal and also for military requirements of sugar, rice and wheat.

Inter-State trade and commerce in respect of foodgrains and other foodstuffs including sugar.

Trade and commerce in, and supply and distribution of, foodgrains.

Trade and commerce in, and the production, supply and distribution of sugar and foodstuffs other than foodgrains.

Price control of sugar, foodgrains and foodstuffs.

Public Distribution System.

The Essential Commodities Act, 1955 (10 of 1955) and the Prevention of Black Marketing and Maintenance of Supplies of Essential Commodities Act, 1980 (7 of 1980), in so far as foodgrains are concerned.

Industries relating to Vanaspati, Oil seeds, Vegetable oils, Cakes, Fats and Sugar (including development of sugar khandsari).

Price Control of and inter-state trade and commerce in and supply and distribution of Vanaspati, Oilseeds, Vegetable Oils, Cakes and Fats

Directorate of Vanaspati, Vegetable Oils and Fats.

Directorate of Sugar, New Delhi.

National Sugar Institute, Kanpur.

National Institute of Sugar and Sugarcane Technology, Mau.

Matters relating to the Development Council of Sugar Industry, New Delhi.

International Sugar Council.

Sugar Development Fund.


Alcohol ‚Äď industrial and potable from the molasses route

Stand-alone Distilleries.