Food vs Fuel (Food Security vs Energy Security) – Explained Pointwise

Recently, the Government lifted the ban on using sugarcane juice for ethanol production. This has brought to focus the effects of India’s biofuel policy, which includes its implications on India’s food security. 

Initially, there were high expectations surrounding biofuels (such as Ethanol, Biodiesel) as a resource that could potentially mitigate global climate change, contribute to energy security and support agricultural producers. However, serious questions have been raised regarding the impact of biofuel production on food security.  

What are Biofuels?

According to the FAO, biofuels are energy carriers that store the energy derived from biomass. A wide range of biomass sources can be used to produce bioenergy. These include – fibre and wood residues from the industrial sector, food and non-food crops, agricultural wastes, algae, etc.  

Ethanol: 

Ethanol-based biofuels are often considered a preferable alternative to fossil fuels due to their lower emissions due to less carbon dioxide emissions than conventional fuels. 

It is produced from grains, their stalks, rotten potatoes, sugarcane juice, sugarcane molasses, and agricultural and industrial waste. When ethanol is produced directly from crops such as rice, maize, and sugarcane, the technology is referred to as 1G (1st Generation). When crop waste, non-food crops, industrial waste, and lignocellulosic (plant dry matter) feedstocks are used, the technology is 2G (2nd Generation).  

Why is India promoting Biofuel production?

Read about the Significance of Biofuels here.  

1) Enhancing India’s energy security: By diversifying its energy sources, India can build a more resilient energy infrastructure, lessening its reliance on a single energy type and promoting a mix of renewable resources.

2) Import Substitution: India heavily relies on imports to meet its energy requirements (around 80% of its oil requirement is imported). Biofuels can help strategically reduce the dependence on imported fossil fuels and conserve foreign exchange reserves.
For instance, India’s crude oil import bill will fall annually by about $4 billion under E20 (NITI Aayog). 

3) Negate Crude Oil Price Hikes: Can significantly offset negative economic impacts of moderate oil price hikes. 

4) Addressing Environmental concerns: As per NITI Aayog, petrol blended with 20% ethanol would reduce carbon monoxide emissions by 50% in two-wheelers and 30% in four-wheelers. 

5) Boosting the domestic agricultural industry: Biofuel production can lead to investment and innovation in agricultural practices. This can help achieve the target of ‘Doubling farmer’s income’. 

6) Job Creation: It can generate about 18 million rural jobs (as per the Asian Development Bank). 

However, the push for ethanol as a fuel in India is not without its challenges, particularly in the area of food security. 

How can India’s biofuel policies harm food security of India?

According to the FAO, crop diversion to biofuels and climate change are the most significant threats to long-term food security. 

India’s biofuel policies can impact food security in several ways: 

1) Diversion of Food Crops: Most ethanol (for blending) in the country is produced using 1G as 2G remains commercially unviable in India. The diversion of food crops such as rice – to ethanol – will hamper India’s nutritional security ambitions.
For instance, in 2022, close to 1 million metric tonnes of rice fit for human consumption from FCI’s stocks was sold at subsidised prices to produce ethanol.  

2) Diversion of Agricultural Land: It can lead to the conversion of agricultural land used for growing food crops to cultivating biofuel feedstocks like sugarcane, corn, or oilseeds. This reduces the land available for growing essential food crops, potentially decreasing overall food production. 

3) Adverse impact on small and marginal farmers: Increased demand for biofuel crops might compete with food crops for resources such as water, fertilizers, and agricultural infrastructure. This competition can lead to price hikes for these resources, affecting small-scale farmers. 

4) Rise in Food Prices: A decrease in land availability for growing food crops can lead to an increase in food prices (due to lesser production).
For instance, the Centre has capped the use of ‘sugacane juice and sugar syrup’ for ethanol production in the 2023-24 supply year due to concerns over sugar price rising. 

5) Disincentivises Crop Diversification: Farmers may prefer to grow more sugarcane and rice due to price support schemes. This would push farmers away from crop diversification strategy of growing more pulses and oilseeds. 

6) Impact on Soil Health: The practices of monocropping for biofuel feedstock crops (such as rice, sugarcane) will deplete the nutrients in the soil and make it infertile. 

7) Impact on Water Availability: Incentives for ethanol blending might encourage increased sugarcane and rice cultivation — water-gruzzling crops.
Producing a kilogram of sugar requires 1,500-2,000 litres of water — making it an unsustainable option. 

8) Climate Change Induced Vulnerability: Biofuel production might contribute to monoculture farming. This can increase vulnerability to climate change-related risks such as pests, diseases, and extreme weather events. 

However, biofuel production may also have a positive impact on India’s food security. 

How can India’s fuel policy enhance food security in the longer term?

1) Raise Agricultural Income: For instance, biodiesel could help raise farm income by providing an additional market for oilseed crops. Farmers can grow oilseed crops in rotation with food crops such as wheat. 

2) Nutritional Security: Biofuel production can create new income streams, generate jobs and lead to infrastructural development in rural areas. The resultant improvement in socio-economic indicators can enhance nutrient absorption by individuals, promoting nutritional security.

3) Increased Farm Productivity: Investment in biofuel technology can stimulate R&D in the agricultural sector. This can lead to technological advancements and increased farm productivity. 

4) Raise Private Investment in Agriculture: Assistance to farmers for growing biofuel feedstocks can also encourage private investment in the agriculture sector. 

Way Forward:

1) Investment in R&D: Investment in R&D on 2G (Non-food sources), 3G (Non-food, non-plant sources such as algae) as well as 4G (Genetically engineered) Biofuels could significantly enhance the future role of biofuels without compromising food security. 

2) Safety Nets: Social security nets such as the National Food Security Act are needed to protect vulnerable people from high food prices and ensure access to adequate food.  

3) Focus on 2G sources such as molasses-based ethanol: If cultivated on wastelands with judicious water usage, it would not have major adverse impacts on food security.  

4) Proper Land Use Management: Land use mapping and allocation studies as well as provisions to make wasteland available for biodiesel production should be undertaken. 

5) Optimising Incentives: It is necessary to design a combination of tax, subsidy, and regulatory measures to ensure that the incentives given to the biodiesel sector do not lead to expansion of biodiesel cultivation into arable lands. 

6) Exploring Alternatives: To achieve the goal of energy security as well as emissions reduction, alternative mechanisms – EVs, other renewable sources (such as solar, wind), etc. – need to be explored. 

India, like many countries, faces the challenge of balancing its energy needs with other priorities such as agriculture and food security. Policies aimed at sustainable energy advancement, optimizing resource use, and coordinated planning can reduce the conflict between clean energy objectives and food security priorities.