Ethanol Production in Uttar Pradesh Rises Over 23% to 2.23 Billion Litres in FY25

 Uttar Pradesh recorded more than 23% growth in ethanol production during 2024-25, strengthening its position in India’s biofuel ecosystem as the country accelerates efforts to increase ethanol blending in petrol and reduce dependence on crude oil imports, as per news reports. 

Ethanol Production Crosses 2.23 Billion Litres 

Ethanol production in Uttar Pradesh rose to 2.23 billion litres during 2024-25 compared to 1.8 billion litres in the previous financial year. 

The increase comes as India targets raising ethanol blending in petrol to 25% from the current 20% level amid rising global energy security concerns linked to geopolitical tensions in West Asia. 

Uttar Pradesh remains India’s largest producer of sugarcane and ethanol, with sugarcane cultivation spread across nearly 2.97 million hectares and supporting around 4.8 million farm households across the state. 

According to the report, the national achievement of 20% ethanol blending has already helped India save nearly 45 million barrels of crude oil annually, resulting in cumulative foreign exchange savings of about ₹4.5 lakh crore. 

Renewable Energy and Biogas Projects Expanding 

Rajiv Gandhi Institute of Petroleum Technology in Amethi is also working on scalable renewable and green energy technologies. 

Harish Hirani, Director of RGIPT, said the institute has expanded its biogas production capacity and is already supplying biogas for practical applications. 

Meanwhile, Kishor Nair, Chief Executive Officer of Avaada Energy, said Uttar Pradesh could attract nearly ₹60,000 crore in private renewable energy investment over the next five years. 

He added that geopolitical uncertainty and supply-chain risks are making “energy security, economic growth, and sustainability” increasingly interconnected. 

Sugarcane Productivity and Mill Capacity Improve 

Sugarcane productivity in Uttar Pradesh has also improved significantly in recent years. Average yield increased to 84 tonnes per hectare in 2025-26 compared to 72 tonnes per hectare before 2016-17. 

The combined crushing capacity of the state’s 125 operational sugar mills has risen to 836,000 tonnes crushed per day (TCD), up from 750,000 TCD before 2017. 

 As per the report, more than ₹3.20 lakh crore has been paid to sugarcane farmers in the state between 2017 and 2026. 

Farmers are increasingly adopting modern cultivation methods and improved seed varieties to boost output and productivity. 

Read More: Uttar Pradesh Government Approves ₹33,000 Crore Meja Thermal Power Expansion Project! 

Conclusion 

Rising ethanol production, expanding renewable energy investments and improving sugarcane productivity are strengthening Uttar Pradesh’s role in India’s energy transition and broader economic growth strategy. 

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