Biofuels and the Food vs. Feed Dilemma

GS3 – Environment

Context

India’s growing emphasis on biofuels is raising alarm over the diversion of food grains and subsidies for energy production, potentially undermining food security and equity in the green transition.

Understanding Biofuels

Biofuels are renewable energy sources derived from organic material such as crops, algae, and agricultural waste (as defined by FAO). Ethanol, a major biofuel, is produced through various technological generations:

• First Generation (1G): Uses edible crops like sugarcane, rice, and maize.
• Second Generation (2G): Relies on agricultural waste and non-edible biomass.
• Third Generation (3G): Extracted from algae and aquatic biomass.
• Fourth Generation (4G): Utilizes genetically modified crops specifically designed for energy use.

Why Biofuels Matter

• Reducing Oil Imports: Ethanol blending can lower crude oil import dependency by 80%, saving approximately $4 billion annually (as per NITI Aayog), and enhances energy security against global price volatility.
• Environmental Benefits: E20 ethanol-petrol blends can cut carbon monoxide emissions by 50% in two-wheelers and 30% in four-wheelers, thus improving urban air quality.
• Rural Employment: Biofuel production could generate up to 18 million jobs in rural areas, supporting livelihoods and local economies.
• Agricultural Incentives: It provides additional income opportunities for farmers by creating a market for surplus or waste produce.

Concerns Over Food Security

• Diversion from Food to Fuel: Crops like maize and rice, once key food staples and exports, are increasingly diverted for ethanol. For instance, in 2024–25, 12.7 million tonnes of maize and 1 million tonnes of rice are expected to be used for ethanol production, leading to maize import dependence.
• Rising Prices and Feed Shortages: With livestock feed demand at 20 million tonnes, competition with ethanol production has driven maize prices from ₹14,000 to ₹25,000 per tonne in just four years.
• Environmental Concerns: Sugarcane, a major ethanol crop, requires 1,500–2,000 litres of water per kg. Monoculture practices also degrade soil health and ecological balance.
• Reduced Crop Diversity: The focus on ethanol-linked crops like rice and sugarcane discourages cultivation of pulses and oilseeds, weakening dietary diversity and climate resilience.
• Oilseed Market Impact: By-products of ethanol production are replacing traditional livestock feed like soybean meal, causing farmer incomes to decline—e.g., soy farmers earning ₹4,300 per quintal against an MSP of ₹4,892.

Way Forward

• Shift to Advanced Biofuels: Prioritise 2G, 3G, and 4G ethanol sources like crop residues, algae, and genetically modified bio-crops to reduce the pressure on food crops.
• Protect Vulnerable Populations: Strengthen schemes like the National Food Security Act (NFSA) to safeguard low-income households from food inflation driven by biofuel-linked crop demand.
• Promote Crop Diversification: Encourage cultivation of non-food energy crops such as pongamia, jatropha, and castor on degraded or unproductive land.
• Optimise Land Use: Use non-arable or wastelands for biofuel cultivation to avoid compromising prime agricultural land.
• Reform Incentives: Adjust policy levers like subsidies and taxation to discourage ethanol production from high-quality farmland and promote sustainable biofuel pathways.
• Scientific Land Mapping: Implement comprehensive land classification strategies to ensure that biofuel targets align with food security and ecological sustainability.
• Expand Clean Energy Mix: Reduce over-reliance on biofuels by investing in other green energy alternatives—electric vehicles, solar, wind, and green hydrogen.