AP CM Chandrababu Pushes Centre for Higher Ethanol Blending in Petrol

As India intensifies efforts to reduce its dependence on crude oil imports and strengthen energy security , Andhra Pradesh Chief Minister N. Chandrababu Naidu has once again urged the Central government to increase the ethanol blending ratio in petrol from the current 20% to 40% . During a telephonic conversation with the Union Petroleum Minister, the Chief Minister stressed the need for a more aggressive ethanol policy and informed him that a formal letter seeking the enhancement had already been submitted to the Centre.

Pointing to countries such as Brazil, where higher ethanol blending levels are already in practice, Chandrababu Naidu said India could significantly reduce its crude oil imports by expanding ethanol usage. He observed that the ethanol blending programme has already helped the country save over ₹1.1 lakh crore in foreign exchange while also contributing to a major reduction in carbon emissions .

The Chief Minister further stated that the ethanol sector has emerged as a key source of additional income for farmers cultivating sugarcane and maize . According to him, ethanol-linked demand has so far generated benefits worth more than ₹87,000 crore for farmers across the country. He noted that Andhra Pradesh, where maize cultivation has increased considerably, would particularly benefit from a higher blending ratio.

Describing maize as an important raw material for ethanol production, Chandrababu Naidu said a rise in ethanol demand would help farmers secure better market prices. He pointed out that although the Centre has fixed the Minimum Support Price (MSP) for maize at ₹2,400 per quintal , market prices in several regions have dropped to nearly ₹1,700–₹1,800 per quintal , placing farmers under financial pressure.

Urging the Centre to take a quick decision on the matter, the Chief Minister said increasing ethanol blending would not only strengthen India’s energy security but also provide long-term economic support to farmers. He also revealed that the issue was recently discussed with Union Home Minister Amit Shah during his visit to New Delhi.