Ethanol Blending in India: Balancing Energy Security, Economy, and Consumer Interests
UPSC Relevance
Prelims: Indian Economy (Energy Security, Agriculture), Environment & Ecology (Biofuels, National Policy on Biofuels), Science & Technology (Ethanol as a fuel).
Mains: GS Paper 3 (Infrastructure: Energy; Indian Economy and issues relating to mobilization of resources, growth, development; Food security; Conservation, environmental pollution and degradation; Major crops-cropping patterns in various parts of the country).
Key Highlights from the News
Key Policy: The article discusses the ethanol blending project in petrol to reduce India's oil import bill and help farmers. E20 (20% ethanol) is the current main target.
Government Objectives:
Import Substitution: Reducing oil imports is India's primary goal.
Farmer Income: Provides additional income to sugarcane, rice, and maize farmers.
Raw Materials Used: Primarily uses C-heavy molasses (not used for sugar production), broken rice, and maize (agriculturally less problematic).
Main Concerns:
Food Security: The "food vs. fuel" debate. In case of food shortage, using food grains for fuel could create a crisis.
Technical Issues: Ethanol is less efficient. It reduces vehicle mileage and can cause corrosion in older vehicle engines.
Consumer Problems: Manufacturers do not provide clear information about vehicle ethanol compatibility. Consumers do not get a significant reduction in fuel prices.
Article's Main Suggestion: Vehicle manufacturers should provide full disclosure about the ethanol compatibility of their older models. If vehicles are damaged due to ethanol-blended fuel, the government should support insurance claims.
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