{"id":68419,"date":"2025-10-13T10:59:18","date_gmt":"2025-10-13T05:29:18","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=68419"},"modified":"2025-10-13T11:06:46","modified_gmt":"2025-10-13T05:36:46","slug":"indias-ethanol-revolution","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/indias-ethanol-revolution\/","title":{"rendered":"India\u2019s Ethanol Revolution Driven by Grains &#8211; Explained"},"content":{"rendered":"<h2 style=\"text-align: justify;\"><strong>Ethanol Revolution Latest News<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">India\u2019s ethanol blending programme has undergone a major shift, with grain-based ethanol, especially from maize, surpassing sugarcane-based production for the first time, marking a structural change in the country\u2019s biofuel strategy.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>Evolution of India\u2019s Ethanol Blending Programme<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">India\u2019s <\/span><a href=\"https:\/\/vajiramandravi.com\/current-affairs\/indias-ethanol-blended-petrol-ebp-programme\/\" target=\"_blank\"><b>ethanol blending programme<\/b><\/a><b> (EBP)<\/b><span style=\"font-weight: 400;\">, launched to reduce crude oil imports and support sugarcane farmers, has undergone a remarkable transformation.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Initially conceived to enable sugar mills to generate additional revenue and make timely payments to cane growers, the programme has evolved into a <\/span><b>multi-feedstock ethanol industry<\/b><span style=\"font-weight: 400;\"> powered largely by grains, especially <\/span><b>maize and rice<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">This shift marks a major structural change in India\u2019s biofuel policy. What began as a sugarcane-linked project is now driven by <\/span><b>grain-based distilleries<\/b><span style=\"font-weight: 400;\">, which have received over <\/span><b>Rs. 40,000 crore in investments<\/b><span style=\"font-weight: 400;\">, reshaping the dynamics of rural industry, fuel policy, and agricultural markets.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>Sugarcane as the Foundation<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Ethanol production in India began through the <\/span><b>fermentation of sucrose<\/b><span style=\"font-weight: 400;\"> from molasses, a by-product of sugarcane processing.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Until 2017-18, sugar mills mainly used <\/span><b>C-heavy molasses<\/b><span style=\"font-weight: 400;\">, the final by-product of sugar extraction.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">However, the introduction of higher procurement prices for ethanol made from <\/span><b>B-heavy molasses<\/b><span style=\"font-weight: 400;\"> and <\/span><b>direct cane juice or syrup<\/b><span style=\"font-weight: 400;\"> encouraged mills to divert cane from sugar production to ethanol.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Between <\/span><b>2013-14 and 2018-19<\/b><span style=\"font-weight: 400;\">, ethanol supplies to oil marketing companies (OMCs) surged from <\/span><b>38 crore litres to nearly 189 crore litres<\/b><span style=\"font-weight: 400;\">, raising the average blending rate from <\/span><b>1.6% to 4.9%<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The policy was hailed as a success in stabilising the sugar sector, especially during periods of price volatility and excess production.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>The Shift from Sugar to Grain<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Starting from the <\/span><b>2018-19 fiscal year<\/b><span style=\"font-weight: 400;\">, the government allowed ethanol production from grains such as <\/span><b>maize, rice, and damaged foodgrains<\/b><span style=\"font-weight: 400;\">, setting differential ex-distillery prices for each.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Initially, this was meant to help sugar mills operate their distilleries year-round by using grains during the <\/span><b>off-season (May-October)<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">However, with attractive pricing and flexible feedstock regulations, <\/span><b>standalone grain-based ethanol plants<\/b><span style=\"font-weight: 400;\"> began proliferating across India, particularly in <\/span><b>Punjab, Haryana, Bihar, Andhra Pradesh, Madhya Pradesh, Maharashtra, Karnataka, Rajasthan, and Chhattisgarh<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">By <\/span><b>2023-24<\/b><span style=\"font-weight: 400;\">, this transition became strikingly visible. Out of the <\/span><b>672.49 crore litres<\/b><span style=\"font-weight: 400;\"> of ethanol supplied to OMCs, only <\/span><b>270.27 crore litres (40.2%)<\/b><span style=\"font-weight: 400;\"> came from sugarcane-based sources, while <\/span><b>402.22 crore litres (59.8%)<\/b><span style=\"font-weight: 400;\"> were grain-based, mostly maize and broken rice.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>Maize Becomes the Mainstay<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The current <\/span><b>2024-25 ethanol supply year<\/b><span style=\"font-weight: 400;\"> reflects the dominance of grains. Out of the <\/span><b>920 crore litres<\/b><span style=\"font-weight: 400;\"> likely to be procured, about <\/span><b>620 crore litres<\/b><span style=\"font-weight: 400;\"> are expected to come from grain-based sources, with <\/span><b>maize contributing nearly 420 crore litres<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Two main factors explain this shift:<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Reduced Sugarcane Availability:<\/b><span style=\"font-weight: 400;\"> Droughts in 2023-24 and 2024-25 hit sugarcane production, prompting the government to restrict ethanol derived from cane juice and B-heavy molasses to safeguard sugar supplies for domestic consumption.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Sugar diverted for ethanol fell from <\/span><b>45 lakh tonnes in 2022-23<\/b><span style=\"font-weight: 400;\"> to <\/span><b>24-35 lakh tonnes<\/b><span style=\"font-weight: 400;\"> in the subsequent two years.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Sugar production declined from <\/span><b>359 lakh tonnes (2021-22)<\/b><span style=\"font-weight: 400;\"> to an estimated <\/span><b>261 lakh tonnes (2024-25)<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Pricing Advantage:<\/b><span style=\"font-weight: 400;\"> Ethanol from maize fetches <\/span><b>Rs. 71.86 per litre<\/b><span style=\"font-weight: 400;\">, compared to Rs. 57.97 from C-heavy molasses, Rs. 60.73 from B-heavy, and Rs. 65.61 from cane juice\/syrup. This made <\/span><b>maize ethanol more lucrative<\/b><span style=\"font-weight: 400;\"> for distillers.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>Growth, Capacity and Policy Implications<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">For <\/span><b>2025\u201326<\/b><span style=\"font-weight: 400;\">, OMCs invited tenders for <\/span><b>1,050 crore litres<\/b><span style=\"font-weight: 400;\"> of ethanol to achieve the <\/span><b>20% blending target<\/b><span style=\"font-weight: 400;\">, but received offers totalling <\/span><b>1,776 crore litres<\/b><span style=\"font-weight: 400;\">, far exceeding requirements. Of this, <\/span><b>1,304 crore litres<\/b><span style=\"font-weight: 400;\"> were from grain-based sources, mainly maize and FCI rice.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Currently, India has <\/span><b>499 operational distilleries<\/b><span style=\"font-weight: 400;\"> with a combined production capacity of <\/span><b>1,822 crore litres annually<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The massive expansion, driven by private and cooperative investment, shows the sector\u2019s potential but also raises policy challenges.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>Challenges and Sustainability Concerns<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li aria-level=\"1\"><b>Excess Production Capacity<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">With ethanol demand capped by blending limits (20% being the technical ceiling for current vehicles), the sector faces a looming <\/span><b>oversupply risk<\/b><span style=\"font-weight: 400;\">. Balancing production capacity and consumption will require strategic planning to avoid price distortions.<\/span><\/li>\n<\/ul>\n<\/li>\n<li aria-level=\"1\"><b>The Food vs. Fuel Debate<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">India\u2019s ethanol policy now faces the global dilemma of diverting <\/span><b>food grains for fuel<\/b><span style=\"font-weight: 400;\">. Producing 420 crore litres of ethanol from maize consumes about <\/span><b>11 million tonnes of grain<\/b><span style=\"font-weight: 400;\">, roughly <\/span><b>26% of India\u2019s total maize output (42 mt)<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Since maize is a critical input for <\/span><b>poultry, dairy, and livestock feed<\/b><span style=\"font-weight: 400;\">, rising ethanol demand could pressure feed costs and food inflation.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Similarly, ethanol from rice depends on <\/span><b>surplus stocks held by the Food Corporation of India (FCI)<\/b><span style=\"font-weight: 400;\">, which may not persist every year.<\/span><\/li>\n<\/ul>\n<\/li>\n<li aria-level=\"1\"><b>Environmental Considerations<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">While ethanol is a cleaner-burning fuel that reduces greenhouse gas emissions, <\/span><b>large-scale grain diversion<\/b><span style=\"font-weight: 400;\"> raises sustainability concerns related to <\/span><b>water use, land allocation, and fertiliser intensity<\/b><span style=\"font-weight: 400;\">, particularly in maize cultivation.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>Government\u2019s Future Strategy<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><span style=\"font-weight: 400;\">To ensure balance, the government is likely to adopt a <\/span><b>dual-feedstock policy<\/b><span style=\"font-weight: 400;\">, encouraging both sugarcane and grain-based ethanol while closely monitoring the food security implications.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Efforts are also underway to develop <\/span><b>second-generation (2G) biofuels<\/b><span style=\"font-weight: 400;\"> using agricultural residues like paddy straw, which could help achieve <\/span><b>the 20% blending target by 2025-26<\/b><span style=\"font-weight: 400;\"> sustainably.<\/span><\/li>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The government\u2019s continued focus on ethanol reflects its <\/span><b>commitment to energy transition<\/b><span style=\"font-weight: 400;\">, rural income diversification, and <\/span><b>reducing crude oil imports<\/b><span style=\"font-weight: 400;\">, which cost over <\/span><b>$160 billion annually<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><b>Source:<\/b><strong> <a href=\"https:\/\/indianexpress.com\/article\/explained\/explained-economics\/how-grain-not-sugar-is-fuelling-indias-ethanol-production-10303256\/\" target=\"_blank\" rel=\"nofollow noopener\">IE<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>India\u2019s ethanol revolution has evolved into a grain-powered industry led by maize-based ethanol production.<\/p>\n","protected":false},"author":21,"featured_media":68435,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18],"tags":[3215,60,22,59],"class_list":{"0":"post-68419","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-mains-current-affairs","8":"tag-ethanol-revolution","9":"tag-mains-articles","10":"tag-upsc-current-affairs","11":"tag-upsc-mains-current-affairs","12":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/68419","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/21"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=68419"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/68419\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/68435"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=68419"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=68419"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=68419"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}