ETHANOL-BLENDED FUEL IN INDIA

NEWS: Ethanol blending helps energy security BUT creates risks for food security. The Economic Survey flags a trade-off between Aatmanirbharta in energy and Aatmanirbharta in food

Background

• Ethanol blending means mixing ethanol (an alcohol-based fuel) with petrol to reduce fossil fuel use.
• India’s target: Blend 20% ethanol in petrol (E20) by 2025-26. Earlier target: 2030 → advanced to 2025-26

Government’s Arguments for E20

• Economic savings: $10 billion/year stays in India (less oil import).
• Raw material sources: C-heavy molasses (by-product of sugar industry, not used for sugar production).
  • Broken rice (stocked in FCI godowns, otherwise wasted).
  • Maize (less water-demanding crop compared to sugarcane).
• Food security concerns addressed: Uses mainly non-food or surplus products.
• Environmental goal: Lower carbon emissions compared to pure petrol.

Concerns & Challenges

• Uneven benefits: More gain for sugarcane farmers, distillers, traders; not all farmers benefit equally.
• Food security risk: Once ethanol economy is entrenched, hard to prioritise food stocks in shortages.
• Hidden imports: Fertilizers for ethanol crops cost ~$10 billion in forex → offsets import savings.
• Efficiency penalty: Ethanol has lower energy content → reduced mileage.
• Corrosion risk: Can affect durability of fuel handling systems.
• Lack of full disclosure from automakers on older model compatibility.
• Insurance coverage in case of ethanol related damage unclear

Government & Industry Actions

• Two ethanol-specific fuel quality norms already in place.
• India planning E27 norm, inspired by Brazil.
• Automakers now announcing flex-fuel models (can run on any ethanol ratio).
• Government claims research shows “no harm” — but editorial stresses transparency & consumer protection.

Way Forward

India needs:

• Crop diversification planning
• Protection of nutritionally critical crops
• Ethanol feedstock diversification (nonfood biomass, 2G ethanol)
• Strong price & procurement support for pulses and oilseeds
• Region-specific cropping strategies