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CEA urges caution on higher ethanol blending, backs E10 option for older two-wheelers

India should consider restoring E10 petrol for older two-wheelers and assess food, land and water impacts before raising ethanol blending beyond E20, CEA V Anantha Nageswaran and Akash Poojari said. They warned higher blending could intensify competition for sugarcane, maize and rice, affecting food security and water resources.

New Delhi: India should consider restoring E10 petrol for older two-wheelers and assess the food, land and water costs before increasing ethanol blending beyond 20%, Chief Economic Adviser V Anantha Nageswaran and Department of Economic Affairs consultant Akash Poojari have said.

In a column published in The Indian Express, the authors said the debate over E20 petrol should move beyond concerns about its compatibility with older vehicles and examine the wider implications of increasing demand for ethanol feedstocks, India Today reported.

They cautioned against moving towards higher blends such as E27 and E30 without assessing how much additional agricultural land and water would be required to produce the necessary ethanol.

India has rapidly expanded its ethanol blending programme and achieved its 20% blending target ahead of schedule. The government has promoted the programme as a way to reduce crude oil imports, save foreign exchange and create an additional market for farmers.

However, higher blending would require larger quantities of feedstocks such as sugarcane, maize and rice. The authors said this could intensify competition between fuel production and food, feed and other industrial uses.

Maize is a particular concern because it is increasingly used by ethanol producers while also serving as a key input for the poultry and livestock industries. Higher demand from distilleries could affect maize prices and influence farmers’ cropping decisions.

The authors also highlighted the water implications of ethanol production, arguing that policymakers should consider not only the water used at distilleries but also the water required to grow crops used as feedstock.

The issue is particularly relevant to sugarcane, which requires significant quantities of water. Committing land, water and agricultural infrastructure to fuel production could make future policy changes difficult, they said.

The concern comes as the government weighs the allocation of sugarcane between sugar production and ethanol. Reuters reported earlier this month that the government was considering restricting sugarcane diversion towards ethanol amid efforts to increase domestic sugar supplies and contain rising prices.

The authors also proposed bringing back E10 petrol for older two-wheelers. They estimate that 75 million to 80 million two-wheelers built before BS-IV standards and fitted with carburettors are still on Indian roads.

According to the column, carburettor-based engines may not be able to adjust adequately to the higher oxygen content associated with E20, potentially affecting the fuel-air mixture and engine temperature. Older rubber components may also be less compatible with higher ethanol blends.

While retrofitting such vehicles with ethanol-compatible components is possible, upgrading millions of vehicles would take time. Offering E10 alongside E20 could provide an interim option for owners of older vehicles while reducing the amount of ethanol required for the overall fleet.

The government has defended E20 after testing its impact on vehicles and has said there is currently no decision to move beyond the 20% blend. It has also opposed a nationwide choice between different petrol blends, citing additional distribution and logistical costs.

Nageswaran and Poojari did not reject the benefits of ethanol blending but called for a broader assessment before India moves beyond E20.

Their argument places food security, water availability and long-term changes in cropping patterns alongside energy security and lower crude oil imports in determining the future direction of India’s ethanol policy.

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Source : ChiniMandi

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