Centre’s ethanol push under scrutiny

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Mumbai: The Union government’s push for ethanol-blended petrol is increasingly facing scrutiny from environmental experts, economists and consumer groups.

One of the biggest concerns is the diversion of agricultural resources towards fuel production. Critics argue that using food crops such as maize, rice and sugarcane for ethanol could affect food availability and influence prices over time. As demand for ethanol rises, farmers may be encouraged to prioritise crops linked to fuel production rather than food cultivation.

Water usage is another major issue. Sugarcane, which remains the primary feedstock for ethanol in India, is among the most water-intensive crops. Environmentalists warn that expanding cultivation in drought-prone regions could worsen groundwater depletion and place additional pressure on already stressed water resources.

B N Kumar, Director of NatConnect Foundation, believes sustainability must remain central to the programme. He argues that reducing dependence on imported fossil fuels is important, but environmental gains should not come at the cost of food security, biodiversity or groundwater reserves. According to him, greater emphasis should be placed on agricultural waste and non-food feedstocks.

Consumers have also raised practical concerns. Ethanol contains less energy than petrol, which can result in slightly lower fuel efficiency. While newer vehicles are increasingly designed to handle higher ethanol blends, owners of older vehicles worry about compatibility issues, maintenance costs and reduced mileage.

Questions have also been raised about the overall environmental impact of ethanol. Although it burns cleaner than petrol, its true carbon footprint depends on how feedstocks are cultivated and processed. 

Excessive irrigation, fertiliser use or expansion of water-intensive crops can reduce the environmental benefits that ethanol is expected to deliver.

Balanced Approach

Despite the criticism, few experts suggest abandoning ethanol blending altogether. Instead, many advocate a more balanced approach focused on second-generation ethanol produced from agricultural residues, crop waste and non-food biomass. Such alternatives can reduce pressure on farmland and water resources while retaining the advantages of domestic biofuel production.

The government sees it as a way to reduce dependence on imported crude oil, cut emissions and create additional income opportunities for farmers. With India importing more than 85 per cent of its crude oil needs, ethanol is being promoted as a domestic alternative.

The push towards 20 per cent ethanol blending has delivered visible benefits. Ethanol production has created a new market for crops such as sugarcane and maize, helping sugar mills manage surplus stocks and improving payments to farmers. Supporters also argue that ethanol-blended fuel burns cleaner than conventional petrol and contributes to lower vehicular emissions.

Industry leaders believe the programme should be viewed from a long-term national perspective. Adithya Jayakar, Joint Managing Director of UCAL Ltd, the pioneers in auto components manufacturing, said ethanol blending supports energy security, reduces crude oil imports and contributes to cleaner mobility. According to him, the initiative also generates economic benefits through foreign exchange savings and additional agricultural income.

The debate highlights a broader challenge for India: balancing energy security, environmental sustainability and agricultural growth. Ethanol blending may remain an important part of the country’s fuel strategy, but its long-term success will depend on ensuring that economic and environmental goals move forward together rather than at each other’s expense.