Discuss the food-vs-fuel dilemma in India's ethanol programme in light of the shift to grain-based feedstocks.
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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
- 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
- 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
- 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
- 4NITI Aayog: Roadmap for Ethanol Blending in India 2020-25 — Report of the Expert Committeewater footprint of sugar-based ethanol, irrigation included