Key Highlights
- India has earmarked an additional 2.8 million tonnes of FCI rice for the upcoming Ethanol Supply Year, raising the total to 5.2 million tonnes.
- The move is aimed at accelerating the 20 % ethanol‑blending goal slated for 2025‑26.
- Each ton of rice can yield approximately 470 litres of ethanol, translating to an estimated 2.45 billion litres of fuel.
- The approved rice is priced at ₹22.50 per kilogram for distilleries.
- Distilleries have already withdrawn roughly 1 million tonnes of the supplied crop.
Detailed Insights
The Union Ministry of Consumer Affairs, Food and Public Distribution’s decision to allocate an extra 2.8 million tonnes of FCI rice under the Ethanol Blended Petrol (EBP) programme reflects India’s push to meet the 20 % ethanol‑blending target by 2025‑26. This expansion brings the total rice earmarked for the Ethanol Supply Year (ESY) 2024‑25 to 5.2 million tonnes. Each tonne of rice is expected to convert to 470 litres of ethanol, yielding about 2.45 billion litres across the entire supply year. Distilleries have already purchased roughly 1 million tonnes of the allocated crop, indicating an initial uptake of the programme. The price set at ₹22.50 per kilogram balances farmer remuneration with the cost‑effectiveness of ethanol production. The move, however, reignites long‑standing debates on food security, as the diversion of major food grains for fuel raises ethical challenges during periods of inflation and nutritional stress.
While the EBP programme aims to reduce dependence on imported fossil fuels and curb carbon emissions, it also supports rural income through crop diversification. Nonetheless, concerns persist about the potential impact on food security, livestock feed availability, and the ethical use of edible grains. The programme’s reliance on first‑generation (1G) biofuels—derived from food crops—contrasts with second‑generation (2G) biofuels that utilize non‑food biomass and are considered more sustainable, albeit technologically costlier.
Key Concepts
- Ethanol Blended Petrol (EBP) – a national programme targeting 20 % ethanol blend in petrol by 2025‑26.
- First‑Generation Biofuel – biofuels produced from food crops such as rice, sugarcane, and maize.
- Second‑Generation Biofuel – biofuels derived from non‑food waste streams, offering greater sustainability.
- Food‑Security Impact – the potential influence of diverting staple grains to fuel production on food availability and prices.
- Ethanol Conversion Rate – the volume of ethanol obtainable per tonne of rice, approximately 470 litres.