India's E20 ethanol push triggers maize import dependence and cost paradox

India's Ethanol Blended Petrol (EBP) Programme was formally launched in 2003 under the Ministry of Petroleum and Natural Gas, with two founding objectives: reducing dependence on crude oil imports (which account for roughly 85% of domestic requirements) and providing a stable revenue outlet for the sugarcane sector. A pilot for blending had been attempted as early as 2001, and an E5 rollout across several states was tried in 2006. The overarching policy framework is the National Policy on Biofuels (NPB), first notified in 2009 and substantially revised in 2018. The 2018 revision was a turning point: it advanced the E20 target from 2030 to 2025 and expanded the permissible feedstock basket beyond sugarcane molasses to include surplus and damaged food grains, rice, broken wheat, and increasingly maize from Food Corporation of India (FCI) central pool stocks.

The 2018 revision also introduced a formal classification of biofuels into Generation 1 (1G) — covering sugarcane and food grains — and Generation 2 (2G) — covering agricultural residues and lignocellulosic material. The Pradhan Mantri JI-VAN Yojana was introduced to support 2G ethanol from agricultural residue. The "Roadmap for Ethanol Blending in India 2020–25", published in June 2021 by NITI Aayog with the Petroleum Ministry, formalised the shift toward maize, finding that sugarcane alone could not sustain a 20% blending target and recommending less water-intensive crops. India achieved the E20 target in 2025, five years ahead of the original schedule, having progressed from 10% blending in 2021–22 to 19.2% in 2024–25.