Ethanol Blending plan should balance Energy security and Food security

 Ethanol Blending plan  should balance Energy security and Food security

 

It is commendable that the Government of India has recognized the importance of achieving energy security and transitioning to a low-carbon economy. 

 

But the question is, blending of locally produced ethanol with petrol is a step in the right direction? Or will it affect the food security in the country? 

 

The National Policy on Biofuels – 2018 (NPB–2018) is a comprehensive policy framework that provides a roadmap for the development and promotion of biofuels in India. The Ethanol Blended Petrol (EBP) Program, Under this programme, a target was set up by the government i.e. 10% ethanol blending by 2022 and 20% blending (E20) by 2030. Further, the procurement price of ethanol by oil marketing companies (OMCs) is fixed by the government and OMCs can procure it from domestic sources.

 

Earlier, Ethanol is produced or procured from sugarcane-based raw materials which are C & B heavy molasses, sugarcane juice, sugar syrup, but food grains like maize, bajra, fruit and vegetable waste etc are also allowed to produce ethanol.

 

India imports over 85 per cent of its oil requirement and ethanol blending could help in reducing dependency on petroleum. India’s net import of petroleum was 212 Mt, with the import spending of US $ 631.1 billion in 2021-22. Most of the petroleum products are used in transportation. The  E20 program can save the country appx.  US $4 billion per annum, i.e. Rs. 30,000 cr. Foreign exchange per year. 

 

The E-20 roadmap from Govt of India proposes the following milestones: 

·      Raise pan-India ethanol production capacity from the current 700 to 1500 crore litres

·      Phased rollout of E10 fuel by April 2022

·      Phased rollout of E20 from April 2023, its availability by April 2025

·      Rollout of E20 material-compliant and E10 engine-tuned vehicles from April 2023

·      Production of E20-tuned engine vehicles from April 2025

·      Nationwide educational campaign

·      Encourage use of water-sparing crops, such as maize, to produce ethanol

·      Promote technology for the production of ethanol from non-food feedstock.

 

The policy objective is to achieve energy security, lower carbon emissions, better air quality, self-reliance, use of damaged food grains, increasing farmers' incomes, employment generation, and greater investment opportunities, enables local enterprises and farmers to participate in the energy economy.

 

But it is drawing criticism from some experts who warn the move and undermine the food security in the world’s second most populous country. 

 

The issue of diverting crops to produce ethanol for fuel is a contentious one, especially in a country like India where food security is still a significant concern. While ethanol blending can help reduce oil imports and cut down carbon emissions, it should not come at the cost of food security.

 

In 2022, close to 1 million metric tonnes of rice from the Food Corporation of India’s stocks was sold at subsidised prices to produce ethanol. As per the Ministry of Consumer Affairs, this rice was fit for human consumption. Similar diversions of crops to produce ethanol have been happening in the open markets for rice, maize and sugarcane in the country. The sale of subsidised rice for ethanol production raises questions about the allocation of resources, as it could have been used to feed the poor instead. Moreover, the diversion of food crops for fuel production can lead to a rise in food prices, making it more difficult for low-income households to access food.

 

Despite the country’s success in boosting agricultural yields and becoming a net exporter of food grains. The fact that India ranks 94th out of 107 countries on the Global hunger index and has an estimated 209 million undernourished people underscores the urgency of addressing the issue. 

 

I conclude here with, It is important to strike a balance between energy security and food security, and policy decisions should be made with the goal of achieving both objectives. Governments should explore alternative sources of biofuels that do not compete with food crops and prioritize investments in agriculture to ensure adequate food production.

 

Ultimately, achieving food security should be a top priority for India, and any policy decisions that could potentially undermine it should be carefully evaluated and reconsidered.