India plans to introduce the mandatory blending of 10 per cent ethanol into gasoline across the entire country from June 2007, Petroleum Secretary M S Srinivasan said on Wednesday.

He said the use of 5 per cent ethanol mixed petrol, currently used in three states, is expected to be spread to rest of the country by Nov 15.

"We have already tied up 50 per cent of the 560 million tonnes of ethanol needed for 5 per cent mixing at Rs 21.50 a litre," Srinivasan said.

India will need 1.12 billion litres of ethanol a year for the move to 10 per cent blended petrol.

"We expect substantial availability of ethanol for 10 per cent blending as new capacities are being created and we are expecting a bumper crop of sugarcane," he said.

Agriculture Minister, Sharad Pawar, said on Wednesday that sugar production in the cane crushing season that began in October was likely to reach 22.7 million tonnes, up from 19 million tonnes in the year ago period.

Faced with the surge in production a ban on sugar exports may be lifted within the next two weeks, Pawar said.

India also plans to replace around 5 per cent of its current 40 million tonnes of annual diesel consumption with jatropha biodiesel within about five years, as it tries to limit oil imports that account for 70 per cent of its needs.