Examine the food-versus-fuel dilemma in India's biofuel policy. How has the government attempted to balance energy security, farmer income, and food availability?

India's Ethanol Blended Petrol Programme, targeting 20% blending (E20) by Ethanol Supply Year 2025-26 under the National Policy on Biofuels 2018 (amended 2022) [1], rests on crop-derived feedstock — sugarcane, maize and surplus rice. This makes the food-versus-fuel trade-off structural, not incidental, yet the policy has sought to manage rather than ignore it.

The dilemma: how it arises

• Feedstock diversion: meeting E20 needs roughly 1,016 crore litres of ethanol [1]; sugarcane juice, molasses and grain are diverted from food and feed uses.
• Foodgrain route: 52 LMT of surplus FCI rice was allocated for ethanol in ESY 2024-25 and 2025-26 [1], drawing criticism that grain meant for the PDS fuels vehicles.
• Water and cropping bias: ethanol's price assurance strengthens incentives for water-intensive sugarcane in already water-stressed belts.
• Indirect food-price risk: maize demand from distilleries can tighten poultry-feed supply.

Government's balancing attempts

• Energy security: blending cuts crude import dependence (India imports the bulk of its oil) and saved large forex outgo — over ₹41,500 crore by the time 10% blending was met in June 2022, five months early [2].
• Farmer income: differential ethanol pricing and direct OMC payments have channelled sizeable dues to cane farmers [2]; feedstock was widened to maize and damaged grain, spreading gains beyond sugar belts.
• Food availability safeguards: only surplus FCI stock above buffer norms is released, and allocation is time-bound rather than open-ended [1].
• Technology exit route: PM JI-VAN Yojana funds 2G ethanol from lignocellulosic biomass — up to ₹150 crore per commercial project, extended to 2028-29 [3] — which uses crop residue, easing both the food trade-off and stubble burning.

The dilemma is therefore being contained through feedstock diversification, surplus-only sourcing and a technological shift to waste-based ethanol. Sustaining this balance requires faster commercialisation of 2G plants, feedstock choices linked to water budgets, and periodic review of grain diversion against buffer norms — so that energy security advances without diluting food security or the SDG-2 commitment.