Andhra Pradesh CM urges Modi Govt to raise ethanol blending to 40%

Andhra Pradesh Chief Minister N. Chandrababu Naidu has urged the Narendra Modi Government at the centre to increase ethanol blending in petrol from the current 20 per cent to 40 per cent. He has been arguing that the move would strengthen India’s energy security, reduce reliance on crude oil imports, and boost farmers’ incomes.

In a communication to Union Petroleum Minister Hardeep Singh Puri, Naidu said he had already written to the Centre seeking an enhanced blending target and called for its early implementation. Drawing comparisons with countries like Brazil, where ethanol blending levels are significantly higher, he said India should move more decisively towards greater use of biofuels.

Naidu noted that the existing ethanol blending programme has already delivered substantial benefits, including savings of nearly Rs 1.1 lakh crore in foreign exchange and a reduction of about 500 lakh tonnes in carbon emissions. He added that farmers have collectively earned Rs 87,558 crore under the current initiative, underscoring its economic impact on the agricultural sector.

Naidu highlighted that increasing the blending ratio would further support farmers, particularly those cultivating sugarcane and maize—key raw materials for ethanol production. He pointed out that Andhra Pradesh is a major maize-producing state and said higher ethanol demand would create a stronger and more stable market for the crop.

However, he raised concerns over the current distress among maize farmers, noting that they are not receiving the government-declared Minimum Support Price (MSP) of Rs 2,400 per quintal due to weak procurement. Instead, market prices have dropped to around Rs 1,700–Rs 1,800 per quintal, leading to losses for growers. Naidu also added that the issue had also been taken up with Union Home Minister Amit Shah during a recent visit to New Delhi.

Andhra Pradesh on Ethanol Forefront 

Andhra Pradesh has risen as a major hub for biofuel production in India, boasting an installed ethanol capacity of about 48 crore litres.  About a month ago, two ethanol production projects proposed in the Kodavalur mandal of Andhra Pradesh have received mandatory environmental clearance. AM Green Group have signed MoUs worth Rs 54,000 crore at the CII Partnership Summit in Visakhapatnam recently to bolster green energy projects.

Similarly, Assago Industries has announced that it will be setting up an Ethanol producing plant in East Godavari with a capacity of 200 kilo liters per day (KLPD).