Gist of Daily Articles: The Hindu/Indian Express/24 March 2026

The Brazil Model & India’s Progress

The article draws a parallel between Brazil’s “Proalcool” program (started after the 1970s oil shocks) and India’s current trajectory.

• Massive Scaling: India has increased ethanol supply to Oil Marketing Companies (OMCs) from 38 crore litres in 2013-14 to an estimated 1,039 crore litres in 2024-25.
• Blending Success: The average blending ratio in petrol has jumped from 1.6% to 19.2% over the same period.
• Feedstock Diversification: Production has shifted from just “C-Heavy” molasses to “B-Heavy” molasses, sugarcane juice, and increasingly to grains like maize and surplus rice.
• Energy Security: The push is driven by the need to reduce dependence on imported crude oil, especially during times of geopolitical tension (like the Iran-Israel or Russia-Ukraine conflicts).

Key Concerns & Challenges:

Despite the growth, several bottlenecks remain:

• Taxation Inconsistency: Currently, ethanol for blending is under GST (5%), but petrol remains outside of it, creating a complex tax structure for fuel.
• Infrastructure Gaps: To reach “Brazil-level” success, India needs separate dispensing units at fuel stations for different blends like E30 or E100 (pure ethanol).
• Vehicle Compatibility: Most current Indian vehicles aren’t designed for high-ethanol blends. There is a need for Flex-Fuel Vehicles (FFVs) that can run on any mix of petrol and ethanol.
• Feedstock Limits: While there is a surplus of sugar and grain now, long-term supply must be managed to ensure it doesn’t impact food security.

Steps to be Taken:

To “step on the gas” with ethanol, the article suggests the following actions:

1. Uniform Taxation: Bring all ethanol fuels (E20, E30, E100) under a unified GST framework to simplify costs.
2. Incentivize Flex-Fuel: The government must nudge or mandate auto manufacturers to produce engines capable of handling 100% hydrous alcohol.
3. Retail Expansion: OMCs need to invest in “dual-pump” stations—one for blended petrol and one for pure ethanol.
4. Conversion Kits: Provide incentives for citizens to use conversion kits to modify existing petrol vehicles to run on ethanol.

Way Forward & Conclusion:

The Way Forward lies in replicating Brazil’s success by moving beyond just “blending” to a “fuel-choice” economy. Since India imports nearly 90% of its crude oil but has a surplus of sugar and grain, ethanol is the most logical path to economic and energy sovereignty.

Conclusion: India has already built the production capacity (over 1,800 crore litres). The final hurdle is not making the fuel, but creating the demand by ensuring vehicles can run on it and consumers can easily buy it. If India transitions to Flex-Fuel Vehicles, it can insulate its economy from global oil price volatility forever.