India’s ambitious biofuel drive, which blends more ethanol with petrol, is being hailed as a major environmental and economic milestone, but critics warn it could undermine food security and vehicle performance.
Last month, India achieved its E20 target, blending 20% ethanol into petrol, five years ahead of schedule. The government views this as a “game changer” in cutting emissions and reducing costly oil imports. Since 2014, ethanol blending has reportedly saved 1.36 trillion rupees ($1.5 billion) in foreign exchange and cut 69.8 million tonnes of carbon dioxide emissions.
With fuel demand expected to double by 2050, experts such as Sandeep Theng of the Indian Federation of Green Energy argue that ethanol blending is essential to curb transport-sector emissions.
Vehicle Owners Push Back
But many Indian vehicles are not E20-compliant, leaving owners concerned about costs and damage. Hormazd Sorabjee, editor of Autocar India, points out that ethanol has a lower energy density and is more corrosive than petrol, causing reduced mileage and faster wear on parts. While newer models are compatible, millions of older cars and two-wheelers are not.
Some manufacturers are offering fixes. Maruti Suzuki may soon introduce an E20 retrofit kit costing up to 6,000 rupees ($69), while Bajaj recommends fuel cleaners priced at around 100 rupees ($1.15) per full tank. But many consumers feel trapped, as petrol stations no longer offer alternatives to E20 fuel.
Insurance is another sticking point. According to a senior executive at Policybazaar, many policies don’t cover engine damage from non-compliant fuel, leaving owners to buy expensive add-ons, and even then, claims can be contested.
The Petroleum Ministry has dismissed such concerns as “largely unfounded,” arguing that engine tuning and inexpensive part replacements during servicing can minimize risks.
Food vs Fuel Debate
Beyond vehicles, food security experts are increasingly alarmed. Ethanol in India is mainly produced from sugarcane and maize, raising fears of agricultural trade-offs.
By 2025, India will need 10 billion litres of ethanol to meet E20 requirements, rising to 20 billion litres by 2050, according to think tank CSTEP. Already, 40% of ethanol is sourced from sugarcane, a water-intensive crop.
The government has also diverted 5.2 million tonnes of rice from Food Corporation of India stocks, grain originally meant for subsidized distribution to the poor, into ethanol production.
“This policy could trigger an agricultural disaster,” warned farming policy expert Devinder Sharma. “In a country where 250 million people go hungry, we cannot use food to feed cars.”
The strain is already visible. In 2024, India became a net importer of maize for the first time in decades, as rising ethanol demand diverted local corn away from poultry feed. The poultry industry now faces higher input costs.
To balance demand, Niti Aayog has proposed a 50-50 split between corn and sugarcane for ethanol supply. But this would require an additional eight million hectares of maize farmland by 2030, unless yields improve drastically. Experts caution that converting land away from pulses or oilseeds to maize could create fresh imbalances in the food system.
The Road Ahead
Despite these concerns, India plans to push further. Petroleum Minister Hardeep Singh Puri recently announced a gradual move toward E25, E27, and eventually E30 blends.
Some climate researchers argue India should have paused at E10, balancing emission reductions with food security. But the government insists that scaling up ethanol is critical for cutting oil dependence and meeting its climate commitments.
As India accelerates towards higher ethanol blends, it faces a complex balancing act: slashing emissions and saving dollars while avoiding shocks to its farms, food supply, and millions of drivers.
