India’s ethanol program progress and challenges

Source: The post India’s ethanol program progress and challenges has been created, based on the article “Blending dilemma: Conflicting priorities on flex-fuel need clear policy” published in “Business Standard” on 22nd January 2025

UPSC Syllabus Topic: GS Paper3-Infrastructures- Energy

Context: The article discusses India’s ethanol-blending program aimed at reducing fossil fuel dependence, emissions, and crude oil imports. It highlights achievements, challenges like food security, water stress, and limited adoption of flex-fuel vehicles, and suggests alternative feedstocks and solutions.

For detailed information on Ethanol Blending Programme (E20 Blending) read this article here

What is India’s ethanol-blending program?

India’s ethanol-blending program aims to reduce fossil fuel dependence, cut carbon emissions, and enhance energy security.

By blending ethanol with petrol, the country saved ₹1.1 trillion in foreign exchange and reduced 50 million tonnes of CO₂ emissions over a decade.

What progress has India made in ethanol blending?

1. Increased Blending Ratio: Achieved 14.6% ethanol blending and aims for 20% by 2025.
2. Enhanced Production Capacity: Ethanol-production capacity more than doubled in four years, reaching 16,230 million litres.
3. Investments in Infrastructure: Invested ₹40,000 crore since 2014 to set up ethanol distilleries.
4. Policy Support: Government notified a lower price for rice supplied to ethanol producers to boost production.

What are the key challenges in achieving higher ethanol blending?

1. Food security vs. fuel security: Ethanol in India is mainly derived from sugarcane, which is water-intensive. Increasing sugarcane use for ethanol raises sugar prices and depletes groundwater, especially in Maharashtra, Karnataka, and Uttar Pradesh. Rising maize demand has made India a net importer of maize.
2. High ethanol prices: Food crop-based ethanol production, supported by price subsidies for farmers, leads to high ethanol prices. Policymakers need to address this issue for sustainable growth.
3. Reluctance in the automobile sector: Flex-fuel vehicles (FFVs), which use ethanol and petrol, have seen slow adoption. Reasons include poor infrastructure for ethanol distribution, low consumer awareness, and higher costs of FFVs. Without FFVs, ethanol targets may fall short.

What solutions can improve ethanol blending?

1. There is a need to shift to alternative feedstocks, such as agricultural waste, non-edible oils, and second-generation biofuels.
2. These options are less resource-intensive and do not harm food security or water availability.
3. Improving FFV adoption is also critical to meeting blending.

Question for practice:

Discuss the progress, challenges, and potential solutions related to India’s ethanol-blending program.