India's Ethanol Blended Petrol Programme Balances Food, Farmers, Energy Security
UPSC / SSC current affairs note · Security
Why in news
The PIB press release clarifies recent misleading claims about the Ethanol Blended Petrol (EBP) programme, emphasizing that it does not compromise food security. It highlights that ethanol blending has kept petrol prices lower during global oil price surges, and the programme supports farmers while reducing import dependence.
Background
The EBP programme is a national initiative to enhance energy security, reduce crude oil import dependence, and support farmers. It involves blending ethanol with petrol, with targets like E20 (20% blending) by 2025-26. The programme uses various feedstocks including sugarcane, maize, damaged foodgrains, and surplus rice from FCI.
Key facts
Ethanol blending prevented petrol prices from rising to about ₹125 per litre during global oil price surges.
Food security is prioritized: grains are first used for PDS, NFSA, welfare schemes, and buffer stocks; only certified surplus is approved for ethanol production.
Ethanol production uses damaged grains, broken rice, and foodgrains unfit for human consumption, converting waste into wealth.
FCI rice is one of several approved feedstocks, priced under government framework; in ESY 2023-24, FCI rice contributed only 0.02% to ethanol production, rising to 24.64% in ESY 2025-26 as surplus became available.
Maize share in ethanol production decreased from 42.6% to 35.96% between ESY 2023-24 and 2025-26, showing feedstock flexibility.
Feedstock prices for ethanol (ESY 2025-26): maize ₹71.86/litre, sugarcane juice/syrup ₹65.61/litre, damaged grains ₹64.00/litre, B-heavy molasses ₹60.73/litre, FCI rice ₹60.32/litre, C-heavy syrup ₹57.97/litre.
The programme is expanding to second-generation ethanol from agricultural residues via PM JI-VAN Yojana, reducing reliance on foodgrains.
The programme aims to balance food security, farmer welfare, and energy security.
Claims of ₹10,000 crore loss from selling FCI rice at ₹23/kg are false; pricing follows government framework.
Ethanol is not more expensive than petrol; the real question is whether India is better secured with the programme.
Prelims pointers
- Ethanol Blended Petrol (EBP) Programme
- E20 target (20% ethanol blending by 2025-26)
- PM JI-VAN Yojana (second-generation ethanol)
- Food Corporation of India (FCI)
- Public Distribution System (PDS)
- National Food Security Act (NFSA)
- Minimum Support Price (MSP)
- Ethanol Supply Year (ESY) 2025-26
- Feedstock prices for ethanol (e.g., maize, sugarcane juice, damaged grains)
- Ministry of Petroleum and Natural Gas
Mains angles
- Discuss the balance between energy security and food security in India's ethanol blending policy.
- Critically examine the role of ethanol blending in reducing crude oil import dependence and its impact on farmers' income.
- Evaluate the sustainability of using foodgrains for ethanol production in the context of food security.