THE CONUNDRUM

Achieving the goal of 20 per cent ethanol blended petrol by 2025-26 is at risk due to the impact of climate on crops. Which then should take precedence energy or food security?

- Ashish Sinha

THE DEADLINE for achieving E20 or 20 per cent ethanol blended petrol in the country has been advanced from 2030 to Ethanol Supply Year (ESY - from November 1, 2024-October 31, 2025) 2025. Sector watchers, however, say this exercise should have happened two years ago, as E10 or 10 per cent ethanol blended petrol, as part of the Ethanol Blended Petrol (EBP) programme, had become a reality in June 2022, a full five months ahead of the November 2022 deadline.

Now, this begs the question: are we on schedule to meet the E20 deadline by November 2025? Those who track the sector closely think otherwise. "In ESY 2024 (November 12023-October 312024), we were to achieve 15 per cent ethanol blended petrol. We may touch 14 per cent at best," says a senior analyst.

Therefore, in order to achieve E20, some tough questions need to be answered. For example, achieving the E20 petrol goal means better utilisation of both grain and sugarcane feedstock to increase its supply. What is the situation of grains? What is the outlook for sugarcane production? Ethanol is produced from two types of feedstock sugarcane and food grains (mainly rice and maize). In the last two years, the overall production of both the feedstock have been hampered due to changing climatic conditions, uneven monsoon among other factors

Why EBP?

EBP reduces India's dependence on imported crude oil by substituting a portion of petrol with domestically produced ethanol, thereby enhancing energy security. The EBP programme supports farmers by creating a market for crops like sugarcane and corn, which are used to produce ethanol. This can help stabilise agricultural incomes and boost the rural economy. Ethanol is a cleaner-burning fuel than petrol, leading to reduced carbon emissions and contributing to India's climate goals. By reducing oil imports, EBP helps save foreign exchange, which is crucial for India's trade balance.