Ethanol Blending Progress & Targets
- India achieved 20% ethanol blending in petrol in FY25 — five years ahead of the original 2030 target.
- New goal: 30% blending in the near future, to reduce fossil fuel dependence and oil imports.
- Ethanol for blending is primarily derived from sugarcane — juice, syrup, and molasses.
Relevance : GS 3(Energy Security)
Rising Ethanol Supply
- Ethanol supply from sugarcane increased from 40 crore litres in FY14 to ~670 crore litres in FY24.
- The surge followed:
- Lifting of bans on using sugarcane juice/syrup/B-heavy molasses for ethanol.
- Reduction in GST on ethanol for blending.
- Ethanol Blending Programme (EBP) evolved from a stagnant early phase to a rapid acceleration.
Sugarcane Production Trends
- Peaked at 490croretonnes in FY23, but is declining:
- Estimated 435 crore tonnes in FY25.
- Factors for the decline:
- Red-rot disease in major producing states.
- Deficient rainfall.
- Flowering issues in crops.
- In response, the Fair Remunerative Price (FRP) for sugarcane was increased to protect farmers.
Retail Sugar Price Impact
- Sugar prices rose from ₹40/kg (May 2023) to ₹45/kg (May 2025).
- Key price drivers:
- Falling production.
- Increased diversion of sugar for ethanol.
- Global supply pressures and domestic demand.
Food vs Fuel Trade-Off
- As ethanol demand grows, more sugarcanegetsdiverted, risking:
- Reduced availability of sugar for direct consumption.
- Further price hikes, especially in lean production years.
- The Centre is exploring grain-based ethanol (e.g., maize, surplus rice) to compensate.
- Critics caution against this shift leading to new food security challenges if not carefully managed.
Broader Implications
- Sustainability benefits:
- Reduces carbon emissions.
- Cuts crude oil imports.
- Provides farmers with alternate income.
- Risks:
- Undermining food affordability and nutrition access.
- Environmental strain due to monocropping (e.g., water-intensive sugarcane).
Conclusion: The Balancing Act
- The government must:
- Ensure food security and price stability.
- Diversify ethanol sources (grains, waste biomass).
- Invest in second–generation biofuels (non-food-based).
- Prioritize sustainable cropping patterns and water management.
