New Delhi : Promotion of ethanol, benefit for farmers!
India has advanced its target for 20% ethanol blending in petrol to 2025-26, with 18% already blended by February 2025. This initiative supports cleaner energy, reduces fuel imports, and benefits farmers by creating demand for crops like maize and rice. Government measures, including expanded feedstocks and tax cuts, boost ethanol production, while creating jobs and promoting environmental sustainability.
The Government of India has reduced the target of 20 percent ethanol blending in petrol from 2030 to 2025-26, that is, the target of 20 percent ethanol blending in petrol is expected to be achieved by the end of this year. Public sector oil marketing companies are reported to have blended up to 18 percent ethanol in petrol by 28 February 2025. This has increased the hope that the expected target i.e. the target of 20 percent ethanol blending in petrol will be achieved in the current financial year. In about 50 countries of the world, 10 to 12 percent ethanol is being blended in petrol, but Brazil is the only country where up to 27 percent ethanol is being blended in petrol. In India, 20 per cent ethanol-blended petrol (E20) is now being used in two-wheelers and four-wheelers. The National Biofuel Coordination Committee has allowed the use of food grains to make ethanol.
Under this, food grains like corn, cassava, rotten potatoes, broken rice, food grains unfit for human consumption, maize, sugarcane juice and molasses along with agricultural residues like rice husk, cotton stalks, corn grains, sawdust, bagasse etc. can be used to make ethanol. The central government has taken several measures to encourage farmers and ethanol producers. This includes expanding feedstock for ethanol production, implementing a price mechanism for the purchase of ethanol, reducing the GST rate on ethanol to 5 percent, amending the Industries Act for the manufacture of ethanol, simplifying the ethanol procurement process by public sector oil marketing companies and changing the target of 20 percent ethanol blending in petrol from 2030 to 2025-26. India imports about 85% of its crude oil requirement every year. In the financial year 2023-24, India imported about 232.5 million tonnes of crude oil, on which about $ 132.4 billion had to be spent. Whereas during the year 2022-23, crude oil worth $ 157.5 billion was imported. This may be due to the purchase of crude oil from Russia at low prices due to the Russia-Ukraine war, but ethanol blending can also be a major reason in it. Ethanol blending is reducing the dependence on fuel imports, which is helping in reducing the expenditure on crude oil. This will directly benefit farmers and ethanol producing units. Farmers will always be able to get a better price for their produce due to the crops and food grains that are being used to make ethanol. Employment opportunities are also increasing due to the establishment of new factories and mills for ethanol production and processing. Since ethanol is a biofuel that causes less pollution, reducing carbon emissions will also help in keeping the environment clean. The policy of mixing ethanol in petrol can certainly play an important role in strengthening the economic condition of farmers. Now the government will also have to take care that farmers do not start producing more and more crops from which ethanol can be made. For this, a clear policy needs to be made so that there is adequate production of all food grains in the country. Otherwise, in the pursuit of profit, the country should not again get trapped in the vicious circle of food shortage.
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Source : Krishak Jagat
