Context: The contribution of maize and damaged foodgrains to India’s ethanol production has increased to 50% for the first time.
- Ethanol Blending Ratio: The ratio of ethanol blending in petrol has reached 13% this year, aiming for a target of 20% by 2025.
- Reasons for Increased Grain Usage:
- Stoppage of Surplus and Damaged Rice Supply: The Food Corporation of India (FCI) has stopped supplying surplus and damaged rice for ethanol production.
- Restrictions on Cane Juice: Restrictions have been imposed on the use of cane juice for ethanol production to control cereal and sugar price inflation.
- High Ex-distillery Price for Maize Ethanol: Ethanol produced from maize commands the highest ex-distillery price (Rs. 71.86/l).
- Impact on Farmers: Using maize for ethanol production can help raise the income of farmers.
Challenges and Concerns
- Food vs. Fuel Dilemma: The shift towards using maize for ethanol production may lead to a decrease in food availability, driving up food prices.
- Environmental Impact: Intensive maize cultivation can lead to soil erosion and increased pesticide use, which are environmental concerns.
Conclusion
While increasing the use of maize and damaged foodgrains for ethanol production can support the agricultural economy and help achieve ethanol blending targets, it is essential to balance these benefits with the potential challenges of food security and environmental sustainability.