INDIA’S ETHANOL PRODUCTION: PROGRESS AND CHALLENGES

GSIII: Science & Technology

Recent Development

India is set to achieve 20% ethanol blending in petrol ahead of schedule, enhancing energy security and cutting crude oil imports.

What is Ethanol Fuel?

Ethanol is a renewable biofuel made from sugarcane, grains, and molasses. Blending it with petrol reduces emissions, improves fuel efficiency, and lowers oil dependence.

Ethanol Production Process

1. Fermentation – Sugars from crops like sugarcane and maize ferment using yeast.
2. Distillation – The mixture is processed to extract ethanol.
3. Dehydration – Water is removed for blending.
4. Blending – Ethanol is mixed with petrol at different levels (E5, E10, E20).

Major Ethanol Sources in India

• Sugarcane & Molasses: 400 crore litres target by 2024-25.
• FCI Rice: Government cut prices to boost ethanol, targeting 110 crore litres.
• Maize: Expected to reach 350-400 crore litres, with distilleries using maize in the off-season.

India’s Ethanol Capacity & Blending Targets

• Current production: 1,600 crore litres, aiming for 1,700 crore litres by 2025.
• Blending levels: 15% in 2024, full E20 blending by 2025.
• Government policies drive expansion.

Role of Maize in Ethanol Production

• Rising Demand: Traditionally used for food and feed, now a key ethanol source.
• Production & Imports:
  • India imported maize worth ₹100 crore (Apr–Jun 2024) and $188 million (Apr–Nov 2024).
  • 2024-25 output: 42 million tonnes, with 9 million tonnes for ethanol.
• Sustainability:
  • Maize requires less water than sugarcane, making it a greener option.
  • Its byproduct (DDGS) is used as poultry feed, reducing food security concerns.
  • However, excessive maize use for ethanol may impact food grain supply.

Challenges in Ethanol Expansion

1. Feedstock Availability: Dependence on food crops raises security concerns.
2. High Water Usage: Sugarcane and rice are water-intensive.
3. Infrastructure Gaps: Storage, blending, and transport issues.
4. Economic Viability: Raw material cost fluctuations affect profitability.
5. Market Disruptions: Increased crop demand for ethanol may cause price volatility.

Government Policies & Initiatives

• Policy Reforms: Lower FCI rice prices, dual-feed distilleries.
• Farmer Support: MSP schemes and ethanol procurement policies.
• Biofuel Investment: Focus on second- and third-generation (2G, 3G) biofuels.
• Global Best Practices: Learning from Brazil & the U.S.

India’s ethanol progress enhances energy security, reduces emissions, and benefits farmers, but balancing sustainability with food security remains crucial.

MAINS QUESTION

Critically examine the sustainability of maize-based ethanol production in India. How can policy interventions balance fuel needs with food security concerns? (250 words)