India reached 20% ethanol mixing in petrol (E20) by 2025, five years ahead of the 2030 goal established under the National Policy on Biofuels (2018)

Regarding EBP

Inaugurated: Pilot program initiated in 2003; broadened under the National Policy on Biofuels (2018).

Objective: Reach 20% ethanol blend (E20) by 2030, accomplished in 2025.

Ministry: Ministry of Oil and Natural Resources

Goals:

Decrease India's significant dependence (~85%) on crude oil imports.

Ensure reliable markets and enhance farmers' incomes.

Reduce greenhouse gas emissions by replacing fossil fuels.

Raw materials: Sugarcane (juice and molasses), rice, corn/maize, spoiled food grains.

Main Issues

Consumer Concerns:

Reduced Mileage: A LocalCircles survey indicated that 67% of petrol vehicle owners rejected E20, highlighting decreased fuel efficiency and higher maintenance expenses.

Restricted Price Advantage: In spite of a 65% drop in worldwide crude oil prices since 2022-23, petrol prices have decreased by just around 2%, leading to skepticism regarding the cost savings transferred to consumers.

Sustainability in Agriculture:

Water-Intensive Crop: Sugarcane requires 60–70 tonnes of water for each tonne produced, leading to groundwater depletion, especially in Maharashtra and Uttar Pradesh.

Land Degradation: Approximately 30% of India’s territory is degraded, in part because of unsustainable farming methods.

Food vs. Fuel Issue: The shift of rice and corn for ethanol production (34% of corn yield allocated for ethanol in 2024–25, coupled with a record allocation for rice) has resulted in higher corn imports, impacting food security.

Path Ahead

Vary Feedstock: Move from sugarcane to other sources like maize, bamboo, and agricultural byproducts to minimize environmental effects.

Consumer Protection: Introduce tax benefits or reimbursements as suggested by NITI Aayog to tackle issues related to decreased fuel efficiency.