India’s National Policy of Biofuels advanced the target of 20% ethanol blending with petrol to 2025-26 from the original target of 2030 after substantial savings in foreign exchange from advancing the 10% and 15% blending targets. Currently, ethanol is produced from sugar-based feedstock, but the government allowing sugar mills to produce ethanol from cane juice depends on the yield of cane. The surplus sugar stock after meeting the demand for sugar in the domestic markets is diverted for ethanol production. Commissioning of the biorefinery in Assam for production of ethanol will demonstrate the potential of bamboo as an alternative feedstock for ethanol production when production of sugarcane is affected by below-average monsoon rainfall or other factors. The bamboo-based biorefinery is likely to be commissioned in December. The refinery has the capacity to produce 6 crore litres of ethanol by processing three lakh tonnes of dried bamboo annually. Ethanol blending with petrol by public sector Oil Marketing Companies (OMC) led to savings of Rs. 1.08 lakh crore of foreign exchange during the last ten years. It has also resulted in crude oil import substitution of 185 lakh litres and a reduction of 557 lakh metric tonnes of carbon dioxide. On the other hand, the ethanol blending programme also brought benefits for sugar mills and sugarcane growers in the country as payment made by OMCs to the sugar mill for the supply of ethanol. This has helped the mills to clear dues of sugarcane growers to the tune of Rs 92,409 crore during the last ten years. Achievement of 20% blending is anticipated to result in payment of Rs 35,000 crore to sugarcane farmers. The demand for ethanol will increase to more than 1000 crore litres annually to achieve the target from the current sugar and rice-based production capacity of around 700 crore litres. The government-imposed prohibition on sugar mills from diverting sugar or molasses for ethanol production in December last year to increase sugar stocks after less rain hit sugar production. Ethanol production from broken rice also faced uncertainty with the Food Corporation of India prohibiting the sale of its rice stocks for the production of the biofuel over monsoon worries. Though the government has lifted the ban, food security and inflation worries will continue to influence policy decisions regarding the availability of sugar/molasses or rice as feedstock for ethanol production. Such uncertainty poses hurdles to sustaining 20% ethanol blending even after it is achieved. Bamboo-based ethanol production provides a sustainable alternative. A key advantage of bamboo in ethanol production is that it requires one-fifth of the water required for growing sugarcane. Besides, bamboo is the fastest-growing plant on earth. The bamboo feedstock to be required in the biorefinery accounts for only one percent of bamboo available in the Northeast region. The availability of such a huge stock of feedstock locally, which is also renewable in a short period, is a crucial factor for the long-term sustainability of more bamboo-based ethanol plants in the region. Abundance of bamboo in the hill states, particularly on traditional jhum fallow, can be explored for medium-sized ethanol production plants in the Northeast region. This will generate new livelihood opportunities for bamboo growers and entrepreneurs on the supply chain. Exemption of bamboo-growing areas in non-forest areas from the definition of tree in the Indian Forest Act unlocked opportunities for the commercial cultivation of bamboo. India importing bamboo from China to meet about 50% of the demand creates a competitive market for bamboo available in the country locally for different industry sectors. Such competitive demand also determines the market price of bamboo as well as the availability of raw and dried bamboo for different sections of industrial buyers. The availability of required feedstock of bamboo at a commercially viable price will be critical for the sustainability of bamboo-based ethanol production. A comprehensive market survey of demand and supply of bamboo available in the region can help the states prepare a roadmap for bamboo cultivation on private land on a commercial scale, keeping in mind the growing demand for bamboo in different industries, including ethanol production. The replacement of fossil fuels with biofuels significantly reduces carbon emissions, due to which ethanol blending with petrol is justified as one of the sustainable strategies for climate change mitigation apart from strengthening the country’s economy by cutting down the crude import bill. Aligning the policies aimed at boosting bamboo production as a cash crop on degraded land, apart from traditionally growing it in the backyard or in community agroforestry with an ethanol-blending program, can open a new window of opportunities for farmers and youths in the region. Bamboo-based ethanol production in Assam is expected to set the agenda for policy discourse in the region for leveraging the abundance of the green gold and favourable climatic conditions for its commercial cultivation with an eye on the country’s ethanol blending goal for reducing fossil fuel use for mobility.