Leverage growing demand for ethanol, formulate comprehensive plan, Andhra CM tells officials

Business To Business, Amaravati, 07^th July, 2026:    Andhra Pradesh Chief Minister N. Chandrababu Naidu on Tuesday directed officials to actively promote investments in the ethanol manufacturing sector, citing the growing demand for ethanol driven by higher blending levels in petrol and diesel.
Chairing the 19th meeting of the State Investment Promotion Board (SIPB), Naidu said the expanding ethanol market presents a significant opportunity to strengthen the rural economy while boosting farmers' incomes and attracting industrial investment.
According to an official press release, the Chief Minister instructed officials to facilitate investments in ethanol production, emphasising that demand for the biofuel is expected to rise substantially as blending with conventional fuels increases.
Naidu noted that raising ethanol blending levels to 40 per cent could provide a substantial increase in income for maize farmers by creating stronger and more stable demand for their produce. He urged officials to encourage investments that would support both agricultural growth and industrial development.
"He emphasised attracting investments to strengthen the rural economy and called for leveraging the growing demand for ethanol. He instructed officials to actively encourage investments in the ethanol manufacturing sector, saying ethanol demand would increase substantially for blending with petrol and diesel," the official release said.
The Chief Minister stressed that expanding ethanol production would not only promote value addition in the agriculture sector but also contribute to rural employment, enhance industrial activity and support the state's broader economic development objectives.
The initiative is expected to position Andhra Pradesh as a key destination for biofuel investments while creating new market opportunities for farmers and contributing to India's clean energy and energy security goals through increased use of ethanol-blended fuels.