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India's Ethanol Blending Target and Maize's Role UPSC NOTE

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  Ethanol Production in India India is set to achieve its 20% ethanol blending target in petrol within the next two months, producing 1,100...

 Ethanol Production in India

  • India is set to achieve its 20% ethanol blending target in petrol within the next two months, producing 1,100 crore litres of ethanol annually, ahead of schedule.

  • The ethanol will be sourced from sugar, high-grade molasses, FCI rice, broken rice, and maize, with India’s ethanol distillery capacity increasing to 1,600 crore litres.

  • Sugar will account for about 400 crore litres of ethanol, with 40 lakh tonnes of sugar going towards ethanol production in 2024. 

  • The remaining ethanol will come from other feedstocks like rice and maize.

  • The government has reduced the price of FCI rice to ₹22.5/kg, enabling the production of 110 crore litres of ethanol from rice, with maize expected to contribute around 400 crore litres.

Role of Maize in Ethanol Production

  • Maize, previously unused for ethanol, will contribute 9 million tonnes for ethanol in 2024-25.

  • Major maize-producing states include Karnataka, Madhya Pradesh, Maharashtra, Andhra Pradesh, and others.

  • Farmers are shifting to maize due to its higher profit for ethanol production.

  • Maize imports increased in 2024, with ₹100 crore worth imported between April and June.

Economic Impact and Sustainability

  • The production of maize for ethanol has increased significantly, with an additional 6 million tonnes produced in just three years to meet ethanol demand.

  • A byproduct of ethanol production, DDGS (Distiller’s Dried Grains with Solubles), is being used as poultry feed, helping prevent disruption in the feed market.

  • The move to ethanol production is expected to save India ₹6,000 crore annually on oil imports, while providing economic benefits to farmers, boosting local incomes.

  • With India’s annual oil import bill at ₹10.5 lakh crore, ethanol production can substantially reduce the country’s dependency on imported oil.

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Learnerz IAS | Concept oriented UPSC Classes in Malayalam: India's Ethanol Blending Target and Maize's Role UPSC NOTE
India's Ethanol Blending Target and Maize's Role UPSC NOTE
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