New Delhi: India should consider bringing back E10 petrol for older two-wheelers and assess the impact on food, land and water resources before increasing ethanol blending beyond 20%, Chief Economic Adviser V Anantha Nageswaran and Department of Economic Affairs consultant Akash Poojari have said.
In a column published in The Indian Express, Nageswaran and Poojari said the debate over E20 should extend beyond concerns about vehicle compatibility and examine the wider consequences of rising demand for ethanol feedstocks.
The authors cautioned against moving towards higher blends such as E27 and E30 without first determining the additional agricultural land and water that would be needed to produce the required ethanol.
India has expanded its ethanol blending programme rapidly and achieved the 20% blending target ahead of schedule. The government has promoted ethanol as a way to reduce crude oil imports, save foreign exchange and create an additional market for agricultural produce.
However, higher blending would increase demand for feedstocks such as sugarcane, maize and rice. The authors said this could intensify competition between fuel production and food, animal feed and industrial uses.
Maize is a particular concern because ethanol producers are increasing their use of the crop, while the poultry and livestock sectors also depend heavily on it. Higher ethanol demand could therefore affect maize prices and influence farmers’ decisions on what to grow.
The authors also highlighted the water requirements of ethanol production. They said policymakers should consider not only the water consumed by ethanol plants but also the water required to grow the crops used as feedstock.
The issue is especially important for sugarcane, which requires substantial amounts of water. The authors warned that allocating land, water and agricultural infrastructure to fuel production could make future policy changes difficult.
The concerns come as the government considers how much sugarcane should be diverted towards ethanol while ensuring adequate sugar supplies. Reuters reported earlier this month that the government was considering restricting sugarcane diversion for ethanol amid rising domestic sugar prices.
Nageswaran and Poojari also recommended restoring E10 petrol for older two-wheelers. They estimated that 75 million to 80 million two-wheelers built before BS-IV standards and fitted with carburettors remain on Indian roads.
According to the authors, older carburettor-based engines may not adjust adequately to the higher oxygen content in E20, potentially affecting the fuel-air mixture and engine temperature. Older rubber components may also be less compatible with higher ethanol blends.
Although these vehicles can be retrofitted with ethanol-compatible components, upgrading millions of vehicles would take time. Providing E10 alongside E20 could give owners of older vehicles an interim option while reducing overall ethanol consumption.
The government has defended E20 after testing its impact on vehicles and has said there is currently no decision to move beyond the 20% blend. It has also rejected calls for nationwide availability of different petrol blends, citing additional distribution and logistical costs.
The authors did not reject the benefits of ethanol blending but called for a broader assessment before India moves beyond E20.
Their argument places food security, water availability and changes in cropping patterns alongside energy security and lower crude oil imports in determining the future direction of India’s ethanol policy.
