EconomyGS3

India's E20 ethanol programme faces water and sustainability trade-offs

Indian Express·2026-08-06· Read original

"India's E20 ethanol programme faces water and sustainability trade-offs"

Prelims Facts

  • •National Biofuel Policy 2018 set the E20 target; the 2022 Amendment expanded permissible feedstocks to include maize, damaged foodgrains, and agricultural residues
  • •Ethanol energy density: ~21 MJ/litre vs ~32 MJ/litre for petrol — E20 fuel delivers approximately 6–7% fewer km/litre than pure petrol
+4 more facts — sign up free to unlock

Key Terms

EROEI (Energy Return on Energy Invested)

ratio of usable energy produced to fossil energy consumed across the full production chain

Life-cycle GHG accounting

measuring total greenhouse gas emissions from cultivation through end-use, not just at the point of combustion

+4 more terms — sign up free to unlock

Study Note

BackgroundCore Concept

Background

India's Ethanol Blending Programme (EBP) was formalised under the National Biofuel Policy, 2018, which set a target of 20% ethanol blending in petrol (E20) by 2030 — a deadline subsequently advanced to 2025–26. The National Policy on Biofuels (Amendment) 2022 expanded permissible feedstocks beyond sugarcane molasses to include maize, damaged foodgrains, and agricultural residues, addressing both food-versus-fuel concerns and the need for supply diversification. Procurement prices are fixed by the Cabinet Committee on Economic Affairs (CCEA), differentiated by feedstock, and ethanol is procured by Oil Marketing Companies (OMCs) — Indian Oil Corporation, BPCL, and HPCL — for blending.

The programme sits at the intersection of energy security, agricultural support, and environmental policy. India's large installed distillery base — concentrated in Uttar Pradesh, Maharashtra, and Karnataka — made sugarcane the dominant feedstock historically. The PM JI-VAN Yojana provides viability-gap funding for second-generation (2G) ethanol plants that use agricultural residues such as rice and wheat straw, aiming to reduce pressure on food crops and address stubble burning. Blending has risen from roughly 1.5% in 2013–14 to nearly 20% by 2025, with annual ethanol consumption approaching 700 crore litres — a scale that now makes the programme's environmental externalities impossible to ignore.

The Topic Explained

A foundational concept for evaluating any biofuel programme is the Energy Return on Energy Invested (EROEI) — the ratio of usable energy produced to fossil energy consumed across the entire production chain (cultivation, fertiliser manufacture, irrigation, transport, distillation). Sugarcane ethanol produced in bagasse-fired distilleries typically achieves an EROEI of 2–4, while grain-based ethanol ranges between 1.2 and 2 due to higher fossil-energy inputs. A positive EROEI confirms a net energy gain, but the magnitude varies sharply by feedstock and production method — meaning not all ethanol is equally beneficial from an energy standpoint.

A second dimension is energy density: petrol contains roughly 32 MJ per litre versus approximately 21 MJ per litre for ethanol — about 34% lower. E20 fuel therefore delivers roughly 6–7% fewer kilometres per litre than pure petrol under comparable conditions. Ethanol's higher octane rating partially offsets this in engines specifically calibrated for higher blends, but millions of older vehicles — two-wheelers, passenger cars, agricultural machinery — were not designed for E20 and face compatibility risks including corrosion of metal components and degradation of rubber seals. …

Sign up free to read the full noteIncludes the rest of The Topic Explained and Current Context

Related PYQs

2021GS1 Prelims

Among the following, which one is the least water-efficient crop?

ASugarcane
BSunflower
CPearl millet
DRed gram
Sign up free to see the answer and explanation
2020GS1 Prelims

According to India's National Policy on Biofuels, which of the following can be used as raw materials for the production of biofuels?

1.Cassava

2.Damaged wheat grains

3.Groundnut seeds

4.Horse gram

5.Rotten potatoes

6.Sugar beet

Select the correct answer using the code given below:

A1, 2, 5 and 6 only
B1, 3, 4 and 6 only
C2, 3, 4 and 5 only
D1, 2, 3, 4, 5 and 6
Sign up free to see the answer and explanation
2014GS1 Prelims

What are the significances of a practical approach to sugarcane production known as 'Sustainable Sugarcane Initiative'?

1.Seed cost is very low in this compared to the conventional method of cultivation.

2.Drip irrigation can be practiced very effectively in this.

3.There is no application of chemical/inorganic fertilizers at all in this.

4.The scope for intercropping is more in this compared to the conventional method of cultivation.

Select the correct answer using the code given below.

A1 and 3 only
B1, 2 and 4 only
C2, 3 and 4 only
D1, 2, 3 and 4
Sign up free to see the answer and explanation

Practice MCQs

Economymedium

With reference to India's Ethanol Blending Programme (EBP), consider the following statements:

1.The National Biofuel Policy 2022 Amendment expanded permissible feedstocks to include maize and damaged foodgrains.

2.Ethanol has a higher energy density than petrol, making E20 fuel more fuel-efficient than pure petrol.

3.The Cabinet Committee on Economic Affairs (CCEA) fixes administered procurement prices for ethanol, differentiated by feedstock.

Which of the statements given above is/are correct?

A1 and 2 only
B1 and 3 only
C2 and 3 only
D1, 2 and 3
Sign up to check your answer & see the explanation
Economymedium

The term 'EROEI', sometimes seen in discussions on biofuel policy, refers to:

AThe ratio of ethanol revenue earned to total energy import expenditure saved
BThe ratio of usable energy produced by a fuel to the fossil energy consumed across its entire production chain
CThe efficiency rating assigned to ethanol distilleries by the Bureau of Energy Efficiency
DThe percentage reduction in greenhouse gas emissions achieved by replacing petrol with ethanol
Sign up to check your answer & see the explanation
Economyhard

Consider the following statements regarding the water implications of India's ethanol blending policy:

1.Sugarcane typically requires 1,500–2,500 mm of water over its growing season.

2.Producing one litre of sugarcane ethanol may embed approximately 2,000–3,500 litres of water.

3.Subsidised electricity for irrigation reduces the apparent cost of sugarcane cultivation without reflecting its environmental water cost.

Which of the statements given above is/are correct?

A1 only
B1 and 2 only
C2 and 3 only
D1, 2 and 3
Sign up to check your answer & see the explanation
Economymedium

Assertion (A): Sugarcane ethanol is not unconditionally carbon neutral despite sugarcane absorbing atmospheric CO₂ during growth.

Reason (R): Life-cycle greenhouse gas accounting must include emissions from fertiliser manufacture, diesel-powered irrigation, transport, and distillation — not just the combustion stage.

Which of the following is correct?

ABoth A and R are true, and R is the correct explanation of A
BBoth A and R are true, but R is NOT the correct explanation of A
CA is true but R is false
DA is false but R is true
Sign up to check your answer & see the explanation
Economyeasy

Which of the following best describes the purpose of PM JI-VAN Yojana in the context of India's biofuel policy?

ATo provide direct income support to sugarcane farmers affected by ethanol price fluctuations
BTo fund the construction of pipeline infrastructure for ethanol transportation to oil blending depots
CTo provide viability-gap funding for second-generation ethanol plants using agricultural residues as feedstock
DTo subsidise the retrofitting of pre-2023 vehicles for compatibility with E20 fuel
Sign up to check your answer & see the explanation

Want the full note, Prelims Facts & MCQ answers?

Create a free account — takes less than a minute.

Create free account