Context: How will the govt produce the required fuel ethanol?

Source: The Hindu

According to Union Minister Nitin Gadkari, India will meet its goal of blending 20% ethanol into petrol within the next two months, at least a year ahead of schedule. This would mean that around 1,100 crore litres of petrol ethanol would be produced annually.

The 1,100 crore litres of gasoline ethanol will be produced from maize, broken rice, Food Corporation of India rice, sugar, and premium molasses. A variety of government incentives and the prospect of a steady, profitable market have propelled India’s ethanol distillery capacity to 1,600 crore litres.

This year, sugar is anticipated to supply about 400 crore litres of ethanol. As of October 2024, India’s sugar reserves amounted to approximately 80 lakh tons. About 315 lakh tonnes of sugar are expected to be produced in the upcoming year, of which 40 lakh tonnes would be used to make ethanol. According to the government handout, FCI rice would create almost 110 crore litres of ethanol this year. This implies that maize should provide around 400 crore litres of gasoline ethanol. Up until 2020, India produced very little or no ethanol from corn.

India produces barely enough maize to meet its traditional needs, including the manufacture of starch, cattle feed, chicken, and around 10% for human consumption. In April 2024, maize imports began to increase as a result of the government’s restrictions on the use of sugar and premium molasses in the production of ethanol.

About Rs. 100 crore worth of maize was imported between April and June, compared to about $33 million for 2023–2024. According to Ministry of Commerce data, from April to November 2024, a total of $188 million worth of maize was imported.

Karnataka, Madhya Pradesh, Maharashtra, Andhra Pradesh, Rajasthan, Bihar, and Uttar Pradesh are the states that produce the most maize. About 42 million tonnes of maize will be produced in the 2024–25 ethanol year, of which 9 million may be used to produce 350–400 crore litres of ethanol.

100 crore litres of gasoline ethanol are estimated to save Rs. 6,000 crores on oil imports and money for the domestic economy, which includes farmers. For comparison, India spends about Rs. 10.5 lakh crore a year on oil imports.

Model Question:

Q: Ethanol blending of petrol is a key initiative towards energy security and reducing carbon emissions. Discuss the role of maize in ethanol production in India, its benefits, and associated challenges. (250 words, 15 marks)

Model Answer:

Ethanol blending of petrol is a crucial initiative under the National Bio-Energy Policy to reduce fossil fuel dependency, lower carbon emissions, and enhance farmer income. India aims for 20% ethanol blending (E20) by 2025-26 as per the Ethanol Blended Petrol (EBP) program. While sugarcane-based ethanol has been the primary source, the government is now promoting maize-based ethanol to diversify feedstock.

Role of Maize in Ethanol Production:

1. Maize is a high-starch crop, making it suitable for ethanol production through fermentation.
2. Under the National Bio-Ethanol Roadmap, maize is identified as a key alternative feedstock to sugarcane.
3. States like Bihar, Maharashtra, Uttar Pradesh, and Madhya Pradesh are promoting maize-based ethanol plants.

Benefits of Maize-Based Ethanol:

1. Diversification of Ethanol Sources – Reduces dependency on water-intensive sugarcane.
2. Boost to Farmers’ Income – Provides an assured market for maize growers.
3. Water Conservation – Maize requires significantly less water than sugarcane.
4. Reduction in Fuel Import Bills – Enhances domestic ethanol production capacity.
5. Employment Generation – Encourages rural industrialization through ethanol plants.

Challenges and Concerns:

1. Competing Food Security Needs – Maize is a staple food and animal feed; diversion to ethanol may impact availability.
2. Price Volatility – Increased ethanol demand may lead to fluctuations in maize prices, affecting poultry and dairy industries.
3. Infrastructure Gaps – Need for dedicated ethanol production facilities and storage.
4. Climate Sensitivity – Maize yields are highly dependent on monsoon patterns and climate variability.

Way Forward:

1. Balanced Approach – Promote maize ethanol without compromising food security.
2. R&D Investments – Improve ethanol yield from maize through technological advancements.
3. Policy Support – Encourage contract farming and MSP-based procurement for maize ethanol.
4. Sustainable Cultivation – Introduce drought-resistant maize varieties to ensure steady supply.

 

Maize-based ethanol production can be a game-changer for India’s biofuel sector, reducing crude oil imports while supporting farmers. However, a balanced policy approach is essential to ensure food security and economic sustainability.