Recently, the Central Government of India has given the green light for the conversion of surplus rice into ethanol. As one of the most versatile biofuels, ethanol will be put to good use by being utilised in producing alcohol-based hand sanitizers and blending into petrol.
National Biofuel Coordination Committee’s Decision
The National Biofuel Coordination Committee (NBCC) was responsible for this decision, which is projected to make a significant dent on a large stockpile of 30.57 million tonnes (MT) of rice – an excess of 128% above the buffer stock and strategic requirement standards. Currently, the Food Corporation of India (FCI) retains a large amount of rice stock from previous years, not including unmilled paddy in possession of millers on behalf of FCI.
Addressing Idle Distillery Capacities
The use of surplus rice for ethanol production stems from concern over approximately 750 million litres of grain-based distillery capacities lying unused due to lack of feedstock. In total, India has nearly 2 billion litres of grain-based distillery capacity. Around 38% of this volume has been under-utilized.
National Policy on Biofuels, 2018
The National Policy on Biofuels, introduced in 2018, allows the conversion of surplus quantities of food grains to ethanol if an oversupply of food grains is projected. The policy further classifies biofuels into different categories, each qualifying for relevant financial and fiscal incentives. These categories include First Generation (Bioalcohols, Biodiesel), Second Generation (Ethanol, Municipal Solid Waste to drop-in fuels), Third Generation (Butanol) and Fourth Generation (Fuel from genetically engineered crops). The policy has expanded the scope of raw material for ethanol production by permitting the use of sugarcane juice, sugar beet, sweet sorghum, corn, cassava and damaged food grains unfit for human consumption.
The Objective of the Policy
The policy’s main objectives include achieving 20% ethanol-blending and 5% biodiesel-blending by the year 2030. It also seeks to broaden the scope of feedstock for ethanol production and provide incentives for production of advanced biofuels.
Criticism on Grounds of Food Security
Despite these potential benefits, the decision has not been without its critics. The key contention is how the government can justify using food stock for fuel at a time when a significant portion of the population lacks adequate food and suffers from malnutrition. In response to the Covid-19 pandemic in March 2020, the government elected to grant 5 kg of wheat or rice and 1 kg of preferred pulses free of charge to 800 million citizens under the National Food Security Act, 2013 (NFSA). However, due to limitations in the Public Distribution System, many of the intended beneficiaries have been unable to access these provisions. Another issue is that the NFSA, based on 2011 census data, did not account for population growth over the last nine years, hence leaving a large number of people outside its coverage.
