India ranks fifth in ethanol production after Brazil, US, China and European Union. As per a Goldman Sach report on biofuel, Brazil topped the charts in 2004 with 15.24 billion litres in 2004 , China produced 3.65 billion litres while India produced 1.75 billion litres in the same year.

India’s total petrol consumption is 10 billion litres and ethanol doped petrol can fulfil 5 % of this at about 0.5 billion litres. As per the ministry of petroleum, after November 2006 all states except for the North east will see use of 5 % oil doped with ethanol. This is likely to rise to 20 % blend by the year 2020. the 5 % ethanol doped petrol is exempted from central excise duty in India, while China provided subsidies for corn growth for ethanol of up to $225 per tonne in 2004.

While India and China are still in the process of formulating a biofuel policy, China already has embarked on a National fuel ethanol programme. This has made it mandatory for 10 % ethanol blend in five provinces of China since 2004 and the country intends to add 26 more cities to the list.