India’s early achievement of E20 fuel blending marks step in reducing greenhouse gas emissions and crude oil dependence. The government aims to move beyond E20 to E27, enhancing energy security while addressing urban pollution and climate goals. The transition presents both opportunities and challenges for consumers, farmers, and the environment.
Recent Developments in Ethanol Blending
India achieved 20 per cent ethanol blending in petrol five years ahead of schedule in 2025. This move supports India’s target to reach net zero emissions by 2070. The government has expanded E20 availability to nearly 90,000 fuel stations nationwide. Earlier blends like E10 were limited to select stations. This rapid rollout aims to curb rising pollution and reduce crude oil imports.
Environmental and Economic Benefits
Ethanol blending reduces carbon emissions . Studies show sugarcane-based ethanol cuts greenhouse gases by 65 per cent compared to petrol. Maize-based ethanol reduces emissions by 50 per cent. Since 2014-15, ethanol blending saved India approximately ₹1.44 trillion in foreign exchange. It also cut carbon dioxide emissions equivalent to planting 300 million trees. This aligns with global biofuel practices seen in Brazil, the US, and Europe.
Impact on Farmers and Agriculture
Ethanol production offers new markets for maize, sugarcane, and rice straw. Farmers benefit from higher crop prices due to biofuel demand. For example, maize prices rose sharply from ₹1,800 to over ₹2,500 per quintal within two years. However, this price rise affects poultry and cattle feed costs, as these sectors consume 70 per cent of maize. Additionally, increased cultivation of water-intensive crops like sugarcane and rice raises concerns over water security in states such as Punjab, Haryana, and Maharashtra.
Challenges for Consumers and Automakers
Most Indian vehicles are currently calibrated for E10 fuel. Only vehicles manufactured after April 2025 are designed for E20 compatibility. Consumers report concerns about mileage and acceleration with E20. Automakers initially expressed doubts but now largely support government policy, assuring minor performance differences. Unlike Europe and the US, India does not yet offer multiple ethanol blend options at fuel stations, limiting consumer choice. Modifications to vehicle parts like rubber seals may be necessary for long-term E20 use.
Policy and Sustainability Considerations
The food-versus-fuel debate intensifies as biofuel crop profitability may divert land from essential food crops like millet and oilseeds. The government faces the challenge of balancing energy security with food and water sustainability. Strategic policy measures are needed to avoid compromising India’s agricultural diversity and water resources while scaling up ethanol blending.
Questions for UPSC:
- Taking example of India’s ethanol blending policy, discuss the role of biofuels in achieving climate change mitigation targets.
- Examine the food-versus-fuel debate in India and analyse its impact on agricultural sustainability and rural economy.
- Discuss in the light of India’s water crisis, how water-intensive crops affect regional water security and suggest sustainable agricultural practices.
- Critically discuss the challenges and opportunities in transitioning to alternative fuels in the Indian transport sector with suitable examples.
