NEWS: The Government of India will continue selling E20 petrol (20% ethanol + 80% petrol) even if global crude oil prices fall below US$70 per barrel, to support farmers' incomes.
ABOUT
- E20 fuel contains 20% ethanol blended with 80% petrol.
- The policy aims to: Reduce crude oil imports, Promote cleaner fuel, Increase farmers' income through ethanol production.
KEY ISSUES
- E20 petrol may remain costlier than pure petrol even when crude oil prices decline.
- Consumers bear higher fuel costs, while benefits to farmers are indirect.
- Sugarcane, the main ethanol feedstock, is highly water- and fertilizer-intensive.
CHALLENGES
- Heavy dependence on sugarcane, especially in water-stressed states like Maharashtra and Karnataka.
- Higher feedstock prices alone cannot solve farmers' income issues.
- Post-harvest losses, poor market access, and inefficient supply chains persist.
- Ethanol production from crop residues (2G ethanol) remains expensive.
ALTERNATIVE FEEDSTOCKS
- Maize – Lower water requirement than sugarcane.
- Millets – Water-efficient but lower starch yield.
- Sweet Sorghum – Less water-intensive and shorter growing season.
- 2G Ethanol – Produced from rice straw, wheat straw, maize stover, and groundnut shells; reduces stubble burning and avoids food–fuel competition.
WAY FORWARD
- Promote 2G ethanol through higher incentives.
- Improve irrigation, logistics, and market access.
- Support residue collection infrastructure and Viability Gap Funding (VGF).
- Ensure fair revenue sharing among ethanol producers, cooperatives, and farmers.
- Balance farmer welfare, consumer interests, food security, and resource conservation.