Skip to main content

India's ethanol push: Balancing energy needs with food security concerns

By N.S. Venkataraman*
Reducing import dependence on crude oil and promoting an eco-friendly strategy, the Government of India is implementing plans to blend ethanol with petrol—an appropriate strategy that has achieved a 17.98% ethanol blending rate as of February 28, 2025, under the ongoing ethanol supply year (2024-25), moving towards the 20% blending target. 
Achieving the 25% target necessitates a substantial increase in domestic ethanol production, for which the government has initiated proactive policies and incentives, with numerous new projects underway. The sugar industry, relying on sugarcane molasses, remains central to the ethanol economy. To further boost production beyond molasses availability, the government has permitted sugarcane juice, maize, biomass, grain, and rice as feedstocks.
However, allowing food crops like maize for ethanol raises questions about the most profitable and beneficial use of maize. The government should not solely focus on ethanol availability without carefully considering alternative applications of maize and their benefits. It appears a tunnel vision for ethanol feedstock might be overshadowing other potentially more beneficial uses of maize, leading critics to suggest this approach is counterproductive.
Maize, India's third most important cereal, serves as food, fodder, and raw material for industrial products. Several maize-based derivative products, such as citric acid and L-Lysine, are currently imported entirely, with annual imports exceeding one lakh and 85,000 tonnes respectively, and a growing domestic demand of 6-7% annually. Other imported maize derivatives like mannitol also exist. 
With India's maize production at 42 million tonnes annually, aiming for 50 million by 2030, converting maize into value-added products like citric acid and L-Lysine could be more remunerative than ethanol production, reducing significant foreign exchange outflow from imports. Incentives to distilleries have increased the procurement price of maize-based ethanol, reflecting efforts to meet blending targets.
The use of rice, an essential food grain with deep cultural significance, as ethanol feedstock is questionable. A shortage of rice can lead to social unrest, as seen recently in Japan. Using rice for ethanol production is viewed by many as a misuse, conflicting with its importance for human welfare. Despite these concerns, the Government of India has increased the rice allocation for ethanol to 52 lakh tonnes for the 2024-25 supply year. This allocation could yield approximately 245 crore litres of ethanol.
The government's justification for using rice for ethanol production, beyond the need to increase ethanol output, remains unclear. While India's rice stocks in FCI godowns are reportedly above the buffer norm, the right strategy might be to export surplus rice, strengthening the agricultural sector and improving farmers’ income. India's rice export policy has seen fluctuations, with recent lifting of curbs. Diverting surplus rice to ethanol production, simply due to current surplus stocks, appears to be a short-term reaction.
Beyond ethanol blending, reducing crude oil imports can be achieved through renewable energy and electric vehicles. Additionally, focusing on alternate, non-food crop feedstocks for ethanol, such as algae, deserves attention. Algae can be cultivated in coastal and waste lands, requiring only sunlight and carbon dioxide, and can yield both biofuel and ethanol. This option avoids competition with food crops, making large-scale algae cultivation an attractive opportunity that surprisingly has not been pursued with due seriousness.
With India's growing population and a significant portion still below the poverty line relying on free rice distribution, allocating rice for ethanol production can be seen as a counterproductive, short-term plan. Lessons should be learned from Japan's recent rice crisis and the resulting social unrest. The right course for India is to export surplus rice, capitalizing on the international rice trade. 
While global rice production forecasts suggest potentially higher carry-over stocks, the international market remains vibrant, and India should aim for a stable position as a rice exporter, rather than frequently changing its export policy. Using surplus rice for ethanol production simply because of current stock levels is a short-sighted approach.
---
*Trustee, Nandini Voice For The Deprived, Chennai

Comments

TRENDING

US-China truce temporary, larger trade war between two economies to continue

By Prabir Purkayastha   The Trump-Xi meeting in Busan, South Korea on 30 October 2025 may have brought about a temporary relief in the US-China trade war. But unless we see the fine print of the agreement, it is difficult to assess whether this is a temporary truce or the beginning of a real rapprochement between the two nations. The jury is still out on that one and we will wait for a better understanding of what has really been achieved in Busan.

When growth shrinks people: Capitalism and the biological decline of the U.S. population

By Bhabani Shankar Nayak*  Critically acclaimed Hungarian-American economic historian and distinguished scholar of economic anthropometric history, Prof. John Komlos (Professor Emeritus, University of Munich), who pioneered the study of the history of human height and weight, has published an article titled “The Decline in the Physical Stature of the U.S. Population Parallels the Diminution in the Rate of Increase in Life Expectancy” on October 31, 2025, in the forthcoming issue of Social Science & Medicine (SSM) – Population Health, Volume 32, December 2025. The findings of the article present a damning critique of the barbaric nature of capitalism and its detrimental impact on human health, highlighting that the average height of Americans began to decline during the era of free-market capitalism. The study draws on an analysis of 17 surveys from the National Health and Nutrition Examination Survey (NHANES), conducted by the U.S. Centers for Disease Control and Prevention (...

Justice for Zubeen Garg: Fans persist as investigations continue in India and Singapore

By Nava Thakuria*  Even a month after the death of Assam’s cultural icon Zubeen Garg in Singapore under mysterious circumstances, thousands of his fans and admirers across eastern India continue their campaign for “ JusticeForZubeenGarg .” A large digital campaign has gained momentum, with over two million social media users from around the world demanding legal action against those allegedly responsible. Although the Assam government has set up a Special Investigation Team (SIT), which has arrested seven people, and a judicial commission headed by Justice Soumitra Saikia of the Gauhati High Court to oversee the probe, public pressure for justice remains strong.

Is vaccine the Voldemort of modern medicine to be left undiscussed, unscrutinised?

By Deepika*    Sridhar Vembu of Zoho stirred up an internet storm by tweeting about the possible link of autism to the growing number of vaccines given to children in India . He had only asked the parents to analyse the connection but doctors, so called public health experts vehemently started opposing Vembu's claims, labeling them "dangerous misinformation" that could erode “vaccine trust”!

Buddhist shrines were 'massively destroyed' by Brahmanical rulers: Historian DN Jha

Nalanda mahavihara By Rajiv Shah  Prominent historian DN Jha, an expert in India's ancient and medieval past, in his new book , "Against the Grain: Notes on Identity, Intolerance and History", in a sharp critique of "Hindutva ideologues", who look at the ancient period of Indian history as "a golden age marked by social harmony, devoid of any religious violence", has said, "Demolition and desecration of rival religious establishments, and the appropriation of their idols, was not uncommon in India before the advent of Islam".

New RTI draft rules inspired by citizen-unfriendly, overtly bureaucratic approach

By Venkatesh Nayak* The Department of Personnel and Training , Government of India has invited comments on a new set of Draft Rules (available in English only) to implement The Right to Information Act, 2005 . The RTI Rules were last amended in 2012 after a long period of consultation with various stakeholders. The Government’s move to put the draft RTI Rules out for people’s comments and suggestions for change is a welcome continuation of the tradition of public consultation. Positive aspects of the Draft RTI Rules While 60-65% of the Draft RTI Rules repeat the content of the 2012 RTI Rules, some new aspects deserve appreciation as they clarify the manner of implementation of key provisions of the RTI Act. These are: Provisions for dealing with non-compliance of the orders and directives of the Central Information Commission (CIC) by public authorities- this was missing in the 2012 RTI Rules. Non-compliance is increasingly becoming a major problem- two of my non-compliance cases are...

Trump escalates threats of war against Venezuela, as millions in US set to lose essential benefits

By Manolo De Los Santos   The United States government is in the grips of one of its longest-running funding gaps in history. The ongoing government shutdown has already stretched beyond 30 days and now, the food security of millions of Americans is at risk as the funding to the Supplemental Nutrition Assistance Program (SNAP) is drying up and Trump officials have refused to tap into contingency funds . Approximately 42 million individuals per month rely on SNAP benefits and are set to lose them beginning on November 1.

Gujarat civil society to move Supreme Court against controversial electoral roll revision

By Rajiv Shah    A recent, well-attended meeting of Gujarat civil society activists in Ahmedabad , held to discuss the impact of the ongoing Special Intensive Revision (SIR) of electoral rolls, has decided to file a petition in the Supreme Court against the controversial exercise initiated by the Election Commission of India (ECI) across the country. Announcing this, senior High Court advocate Anand Yagnik , who heads the Gujarat chapter of the People’s Union for Civil Liberties (PUCL), said that a committee has already been formed to examine the pros and cons of SIR. “While the SIR exercise began in Gujarat on November 4 and is scheduled to continue for a month, we will file a supporting petition in the case against SIR in the Gujarat High Court or the Supreme Court after observing how it proceeds in the state,” he said. Yagnik’s announcement followed senior advocate Shahrukh Alam —who is arguing the SIR case in the Supreme Court—urging Gujarat’s civil society to also file ...

Why PESA, a Birsa Munda legacy, remains India’s unfulfilled commitment to its tribal peoples

By Raj Kumar Sinha*  Nearly three decades ago, the Indian Parliament enacted a landmark law for tribal regions — the Panchayat (Extension to Scheduled Areas) Act, 1996, better known as PESA. This legislation sought to restore the traditional autonomy of tribal societies and empower them to use local resources according to their customs and needs. However, such decentralization never sat well with today’s developmental politicians, capitalists, and bureaucrats. The question therefore arises — what makes PESA so important?