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Discuss the food-vs-fuel dilemma in India's ethanol programme in light of the shift to grain-based feedstocks.

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In this answer
  1. Why feedstocks are shifting to grain
  2. The "food" side of the dilemma
  3. The "fuel" side of the dilemma

India's ethanol programme was first used to absorb surplus sugarcane. It now depends more and more on grain. FCI rice made up just 0.02% of ethanol supplied in ESY 2023-24 but 24.64% by ESY 2025-26 [1]. The same grain now serves the ration plate, animal feed and the fuel tank, which makes the food-vs-fuel dilemma sharper.

Why feedstocks are shifting to grain

  • Rapid scale-up: ethanol supplied to OMCs grew about 38% a year, from 1.73 billion litres (2019-20) to a projected 12 billion litres (2025-26). Cane alone could not keep up [2].
  • Maize growth: maize output grew at 11.4% CAGR, against 5.1% for sugarcane [2].
  • Year-round plants: a 2025 scheme converts cooperative sugar mills into multi-feed plants that can run on maize and grain outside the crushing season [3].

The "food" side of the dilemma

  • Pressure on public stocks: 52 lakh tonnes of FCI rice a year were approved for ethanol in ESY 2024-25 and 2025-26 [1]. Grain surplus changes with the harvest, but fuel demand does not. A drought year would force a choice between ration stocks and blending.
  • Competition for animal feed: maize also feeds poultry and cattle. ICRIER warns that E20 can strain food and feed prices [2].
  • Water cost: NITI Aayog's Expert Committee estimated about 2,860 litres of water per litre of sugar-based ethanol once irrigation is counted [4]. Using crops for fuel uses scarce water too.

The "fuel" side of the dilemma

  • Energy security: the programme has saved more than ₹1.97 lakh crore in foreign exchange and cut crude imports by over 316 lakh tonnes [1].
  • Surplus-first principle: the Centre says rice goes to ethanol only after PDS, NFSA and buffer-stock needs are met [1].
  • Feedstock flexibility: maize's share fell from 42.6% to 35.96% as producers switched to whatever feedstock was available. The system can adjust [1].
  • Farm incomes: steady offtake by OMCs gives growers of cane, maize and rice a new market [3].

Fuel does not have to replace food. The real question is how the programme is sequenced. ICRIER suggests keeping E20 as the long-term target, allowing a temporary E15 in shortage years, treating FCI rice as a residual source only, and moving to agricultural residues over time [2]. A flexible approach of this kind lets energy security (SDG 7) advance without weakening food security (SDG 2, Zero Hunger) or the right to food under the NFSA.

Sources

  1. 1PIB: India's ethanol blended petrol programme balances food security, farmer welfare and energy security (MoPNG, 2026)FCI rice share rising from 0.02% to 24.64%; 52 LMT rice allocation; surplus-first principle; maize share falling from 42.6% to 35.96%; ₹1.97 lakh crore forex saving
  2. 2ICRIER Policy Brief 77: Food vs Fuel — Recalibrating India's Ethanol Blending Strategymaize at 11.4% CAGR vs cane at 5.1%; ethanol supply growth; food and feed price strain; E15 flexibility; FCI rice as a residual source; agricultural residues
  3. 3PIB: Centre notifies new scheme for Cooperative Sugar Mills to convert sugarcane-based plants into multi-feed ethanol plants (06.03.2025)multi-feed conversion; year-round operation; OMC offtake priority
  4. 4NITI Aayog: Roadmap for Ethanol Blending in India 2020-25 — Report of the Expert Committeewater footprint of sugar-based ethanol, irrigation included
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