New Delhi: India’s push to increase ethanol blending in petrol has triggered a dramatic expansion in the area of farmland linked to fuel production, with new research showing an more than eight-fold increase in land used for ethanol feedstocks over the past four years.
The expansion is part of the country’s broader strategy to reduce dependence on imported crude oil, strengthen energy security and lower carbon emissions through the use of biofuels derived from crops such as sugarcane, rice and maize, Reuters reported.
According to data presented by Delhi-based research organisation Arcus Policy Research, the area associated with ethanol feedstock cultivation rose from 0.7 million hectares in 2020-21 to 5.7 million hectares in 2024-25. The increase has been driven largely by rapid growth in grain-based ethanol production.
India currently blends 20 percent ethanol with petrol, achieving its E20 target in 2025, five years ahead of schedule. The blending rate has increased more than thirteen-fold from 1.5 percent in 2014.
The ethanol programme was initially based on surplus sugar production, but the composition of feedstocks has changed significantly. In 2024-25, grain-based ethanol accounted for 68 percent of supplies to public fuel retailers, while sugarcane-based ethanol contributed 32 percent.
Researchers said the shift toward maize and rice is altering agricultural patterns across the country. Maize cultivation expanded from 9.9 million hectares in 2020-21 to 13.7 million hectares in 2024-25, while nearly 29 percent of India’s maize production was diverted for ethanol manufacturing during the same period.
Shweta Saini said the rapid growth reflects a major transformation in India’s ethanol programme, moving away from sugarcane and increasingly relying on grains such as maize and rice.
The change is also influencing agricultural supply chains, affecting livestock feed markets, crop choices and land-use decisions. Researchers noted that increased maize cultivation for ethanol has affected soybean growers, as ethanol production generates a by-product that competes with soybean meal in the animal feed market.
Concerns have also emerged over the growing use of government rice stocks for ethanol production. India allocated a record 5.2 million metric tonnes of rice from state reserves for ethanol manufacturing in 2024-25.
Former agriculture secretary Siraj Hussain said much of the broken rice supplied to ethanol plants was previously suitable for human consumption and had been used in the country’s public food distribution system.
Researchers warned that while food grain availability may remain adequate, the increasing focus on fuel-linked crops could have implications for India’s nutrition security. They pointed out that the country continues to depend heavily on imports of edible oils and pulses, while policy incentives still encourage cultivation of water-intensive crops such as paddy.
The government maintains that the ethanol blending programme has delivered significant economic and environmental benefits. Over the past decade, it says the initiative has helped save ₹1.06 lakh crore in crude oil imports and prevented 54.4 million tonnes of carbon emissions.
Industry representatives have defended the programme, arguing that it has created a strong domestic market for crops such as maize and sugarcane while generating income for rural communities.
Vijendra Singh said the ethanol programme makes economic sense for the country and benefits rural economies by increasing demand for agricultural produce. He also rejected concerns that ethanol expansion would necessarily reduce food production, saying farmers would continue to choose crops based on profitability and market demand.
Despite concerns over land use, food security and environmental impacts, policymakers and industry groups are increasingly advocating ethanol blends beyond E20 as part of India’s efforts to further reduce its reliance on imported oil.
Researchers, however, cautioned that achieving higher blending targets in the future could become more challenging as climate-related disruptions, changing dietary patterns and rising demand for feed, edible oils and food crops intensify competition for the country’s limited agricultural land resources.
